As the European capital markets continue to change dramatically under MiFID, buy-side institutions aim to repatriate in-house the execution intelligence of the sell-side. This translates into having the technology which enables the buy-side to:
- Decide on the execution brokers based on dynamic analysis of quality and performance
- Dynamically decide on the type and quality of broker-based algorithms
- Build a smart-order routing capability to select the final exchanges, MTFs and dark pools. With the advent of liquidity decentralisation and the obsolescence of DMA, this is an increasingly necessary tool
Quod Financial's buy-side ASOR leverages its existing sell-side class technology and algorithms, and brings a new level of dynamic decision making and routing capability to the buy-side community. In addition, it provides the possibility to have a comprehensive multi-asset execution strategy which mirrors the cross-asset investment strategy.
"This is the next step in the evolution of the European capital markets," states Ali Pichvai, CEO and co-founder of Quod Financial.
"Having successfully gained momentum in the post-MiFID sell-side advanced smart order routing space, we have been invited by leading buy-side institutions to reutilise our technology to meet a number of challenges; implementing their complex execution strategies, proactively measuring the quality and performance of their brokers and their algorithms, as well as addressing liquidity fragmentation. We are confident we can meet this challenge, assisting our clients in gaining full independence."
Built on a low latency, high performance infrastructure, Quod ASOR's combination of algorithms and trading-specific Complex Event Processing (CEP) dynamically adjusts the execution pattern of an order against the client's individual best execution criteria. The ASOR is uniquely positioned to provide adaptive decision making and routing, and liquidity management. Quod ASOR is already live and proven with a number of leading international brokers, and is one of a number of advanced execution modules built upon the Quod Advanced Execution platform.
"Our underlying technologies have enabled us to create a smart-order router that is not only well adapted for the sell-side, but is now a viable solution for the buy-side. Our R&D effort continues to position us at the forefront of innovation in this fast-moving field", concludes Pichvai.