Tuesday, February 21, 2012
IRESS is pleased to announce the introduction of the Trade-Through Analysis command in release 1.05 of the IRESS Professional desktop.
New multi-market trading arrangements have increased the regulatory burden on brokers to demonstrate compliance with their best execution obligations. Together with IRESS Market Depth Replay, Trade-Through Analysis assists participants in monitoring the outcomes of their implemented best execution policies.
IRESS’ Trade-Through Analysis compares traded prices against the best bid and offer prices on all available markets to detect potential trade-throughs. A trade-through occurs when a trade bypasses a better-priced order displayed on another market.
The new functionality is available to all market participants, not only those brokers who use IRESS trading solutions. Kirsty Gross, IRESS General Manager Financial Markets Australia, said that results are calculated independently of a broker’s order management and smart routing applications. “Importantly, it allows all brokers to benchmark their best execution arrangements in isolation, and to compare performance against each other.” Key to the benchmark are trade statistics for the National Best Bid and Offer (NBBO), that show percentage of trades and trade value that have occurred within the NBBO.
Ms Gross added that Trade-Through Analysis will also be available to buy-side clients on a T+3 basis. “Trading costs can be significant for the buy-side and a potential drain on performance. There is an onus on the buy-side to understand how brokers are delivering best execution for their mandates. Trade-through is one dimension – analysing trading performance against trading benchmarks is another, which is also a focus area for IRESS in coming releases.”
Supplementing the Trade-Through Analysis, Market Depth Replay allows the events leading to trade-throughs to be analysed. The Market Depth Analysis command reconstructs the consolidated market at a particular point in time, allowing users to step through the events before and after any trade. These tools are used widely to support responding to specific client enquiries about orders and trades.
Brokers can organise a trial of Trade-Through Analysis by contacting their IRESS Account Executive. Buy-side clients can organise access to Trade-Through Analysis by upgrading to IRESS version 1.05.
For more information, please contact: