Liquidity Cockpit – Navigating in Fragmented Markets
The Liquidity Cockpit is designed to give global trading and investment firms enhanced visibility over dark and lit liquidity, and the ability to navigate across a fragmented and dynamic market landscape.
The Liquidity Cockpit provides an independent, consolidated view of pan-European trading activity instantaneously reflecting the ongoing changes of market structure, e.g. LIS executions.
As a result of the MiFID II dark volume caps coming into force and the rise in Large in Scale (LIS) trading activity, equity market participants need to recognise LIS classified trades, track market share and navigate interactions across different liquidity pools.
The big-xyt Liquidity Cockpit provides exchanges, buy-side and sell-side firms and market commentators with an overview of market share across all major European venues, including LIS categorised trades in line with ESMA thresholds, and the ability to act on changing market dynamics.
The new ETF Liquidity Cockpit presents a unique view on the ETF market place.
Product Features
Systematic Internalisers
Evaluate the market share of trades reported under this mechanism. Drill down into the detail, filtering out non-addressable volume to create a more realistic view of comparable market volumes.
Traded Volumes
Gain insight on share of trading across European venues aggregated by execution venues, indices or trade categories.
Periodic Auctions
Investigate the rise of periodic auctions by venues and regions.
Most Active Securities
Discover the most active securities in European trading using filter options on execution venues, indices or trade categories.
Large In Scale (LIS)
Understand the dynamics of market structure (pre and post MiFID II), e.g. the impact on Large In Scale trading and dark pools.
Double Volume Caps
Understand the daily forecast of DVCs on dark pools (per market and per venue). This estimation takes into account expected LIS trading volumes.
Spreads and Market Depth
Compare market quality across venues using various spread measures (spreads on BBO, effective spreads for a given trade size).
Price Move Measure
Investigate the market move for trades across block trading venues, lit markets and dark pools.
Customer Benefits
Powerful Visualisation
Interactive dashboards enable users to quickly analyse data sets by security, venue, index, trade condition or share of LIS trading across European trading venues.
Data Quality
All analytics functionality is performed by big xyt on tick-by-tick datasets. Our automated plausibility checks allow us to spot quality issues immediately.
Trade Conditions
All analytics is using trade categories that are derived from the MMT standard. This allows comparison across trading venues.
Zero Maintenance
All analytics functionality is provided through a web-based user interface. The dashboards can also be used on tablets.
Analytics as a Service
The customization service for the Liquidity Cockpit adds new business functionality quickly - usually within 24 hours. New functionality is then available through the dashboards.
Use Cases
Optimize Trading and Execution
The Liquidity Cockpit delivers actionable insight by delivering transparency on market structure changes.
Venue Comparison
Market quality measures provide an indication for expected transaction costs. The normalized indicators enable users to compare venues.
Liquidity for ETFs
Still mainly traded OTC the ETF trading is expected to move on exchange. The Liquidity Cockpit provides liquidity indicators for all ETFs across all venues.
Differentiating Factors
Independence
As a privately owned company, our clients see big xyt as an unbiased and objective provider of data analysis.
Transparent Methodology
All measures are fully documented and can be verified with the underlying tick data.
Trend Analysis
Looking at analysis over time rather than snapshot allows the user to perform bespoke trend analysis filtered custom studies or general market overview.
Flexibility
Data can be provided via a variety of delivery mechanisms and analysis via our unique browser based visualisation tool allows optimal flexibility when filtering different venues and comparing date ranges.
Resilience
All our products are distributed across regions, servers and data centers, i.e. our products are delivered through a reliable setup.
Cost Management
We reduce the Total Cost of Ownership. Our technology team are focussed on collecting, curating and delivering analysis that each our clients would require a team of 2 or 3 people to support in addition to the cost of raw data and infrastructure. We have a subscription pricing model.
Liquidity Cockpit: Success Story
Forecasting the Impact of Double Volume Caps on Dark Trading
As a result of MiFID II, leading buy side firms want to understand the impact of double volume caps on dark trading, i.e. how many securities will be affected by market or venue caps and when.
In order to provide this research the trading firm has to
Collect or buy tick data for all European venues.
Integrate all datasets into a single analytics platform in order to apply the required business logic on every single trade for all securities.
Track the LIS trading under MiFID II, i.e. applying the ESMA thresholds to each trade.
Normalize all trade conditions in order to allow aggregations across venues.
The Liquidity Cockpit manages all these tasks (and many others) using fully automated processes on a daily basis.
By subscribing to the Liquidity Cockpit, the trading firm received immediate access to all the required functionality including daily updates of the results.
The Liquidity Cockpit offers the following benefits:
Independent research and actionable information delivered through an innovative platform.
No additional costs for data, hardware or optimized software.
Access to relevant information like market impact measures that enable the firm to further optimize trading and execution.
Relying on highly specialized analytics firms allows trading firms to focus on their core business and results in a competitive advantage.