The European trading community currently has no independent benchmark to validate trading performance in the complex and highly fragmented post-MiFID environment. The Tradalyzer allows market participants of all types to better understand their execution quality and meet the ever-growing demands for transparency from buy-side clients, investors and regulators.
The Tradalyzer enables brokers to understand the effectiveness of their smart routing technology and provide independent validation of the quality of their execution service. At the same time, the Tradalyzer empowers the buy-side by giving them the facts they need to compare their trading outcome against the market. It enables them to review broker performance and make more informed decisions about how and where to trade. In addition, the Tradalyzer gives trading venues of all types the ability to monitor their performance against the rest of the market, track competitor activity and demonstrate the value they offer.
Steve Grob, Director of Group Strategy at Fidessa, said: âMarket participants struggle to navigate the highly complex trading landscape without an independent, consolidated view of the market. Whilst some direction will eventually come from the regulators, the way forward is far from clear. Appraising performance in this environment is extremely challenging, but Fidessaâs Tradalyzer provides independent analysis across the lit and dark spectrum that has emerged in the wake of MiFID. It brings greater intelligence and deeper insight to the analysis of the trading process."
Robin Strong, Director, Buy-side Market Strategy at Fidessa, added: "For the first time, anyone within the trading community can access all the information necessary to assess performance and evaluate how it could be improved. In particular, we anticipate that many of our buy-side customers will use the Tradalyzer to validate the quality of execution they are receiving.â
The Tradalyzer allows users to input the parameters of a trade (such as stock ID, price, direction, start and end time) which is then compared with the consolidated view from Fidessaâs ticker plant. The result is a highly intuitive, graphical report that immediately shows how that trade compared with the performance of the consolidated market during the same interval. It gives a clear picture of market momentum, price and volume distribution, as well as showing gains or losses against VWAP, TWAP and other recognised industry benchmarks. The report, which can be downloaded or emailed at the click of a button, also offers detailed analysis of alternative outcomes, including gains or losses, available from other relevant lit and dark venues.
Data feeding the Tradalyzer is updated at the end of each trading day and is available for analysis from the following day. Analysis can be performed on trades dating back over the previous ninety days. The Tradalyzer will initially cover European stocks and Fidessa is looking at plans to expand its coverage to other geographies.
The Tradalyzer follows in the footsteps of the award-winning Fidessa Fragmentation Index (FFI) and the FragulatorÂ® that leverage Fidessaâs market data to provide invaluable insight into the reality of trading in todayâs markets.