Weathering equity trading storms like the Brexit-aftermath is more challenging than ever because everyone wants more execution data made available in real time. Analytics platform performance must keep up when trade volumes are frenzied, fast and furious.
I recently read an interesting FinExtra article discussing the technological lessons learned from the financial markets trading activities after Brexit. In addition to the discussion about dealing with the surge in trading volumes and exchange rate volatility there was an interesting comment from Vishal Sood, Director, Equities Electronic Execution Technology at Citi:
What’s changed is that a lot of clients, particularly in equities, are asking the sell-side for execution data in real time to be made available to them, noted Citi’s Sood.”
He’s not alone in making this observation. TechValidate’s recent survey of our banking and financial markets customers found that 65% respondents use Corvil to investigate client execution quality issues and respond to inquiries – up from 37% in 2013.
So what’s driving this growth trend? The article goes on to say:
Transparency and the real time ability to prove the quality of execution at this juncture is not a luxury. It’s a commodity,” said Citi’s Sood. “Everyone has to do it and that will be the standard going forward.”
So what did “asking for execution data in real time” mean for equity trading firms in the days immediately after Brexit? Dealing with the blizzard of trades occurring was not just limited to the infrastructure and technology teams of market participants and trading venues.
Those firms also had to deal with a storm surge of calls from clients (large, small, institutional and individual) about the execution of their trades. One can only imagine the questions about fill-rate, order routing or trade strategy performance being asked. Similarly one can only imagine the internal questions being asked about infrastructure performance affecting specific client trades -- not to mention the regulators waiting in the wings with their list of compliance questions.
In our experience, it’s these stormy situations that demonstrate that the fastest way to get and display accurate and insightful execution data is to pull it off the wire as the trades are being communicated. Analyzing each transaction as it is streaming across your network provides unique insight into how your business and infrastructure performs on behalf of your clients.
It’s during the blizzard that firms need visibility and real-time understanding of how client orders are executed across their infrastructure.
It’s these stormy situations when you need real-time dashboards and analytics delivering unmatched accuracy and unmatched performance for client execution at the same time.
If the worst happens and your trading systems buckle or behave unpredictably during these times, then the accuracy of system reporting can be called into question by regulators. This is when you’ll need an independent report of exactly what happened. A report delivered by analytics that are perfectly traceable to the original network packets communicating the trade details. This traceability safeguards your trading business both in real time and long term.