big xyt

About Us

Verification Tool

In response to the pre-hedging debate we are excited to share a recent development to deliver a unique solution to the industry.

The Trade Verification Tool enables users to quickly verify suspicious trades without being exposed to the complexity of a fragmented market across more than 30,000 listings in Europe alone.

The big xyt Trade Verification Tool (an extension to our Open TCA solution for pre and post-trade execution analytics) provides transparency on ETF execution quality.

Take any trade or order and our analytics engine returns the verification of orderbook characteristics, price reversion and execution performance instantaneously.

Verify any trade of a product at any point in time with the following metrics:

  • Mid-price movement before and after the trade
  • Changes in spreads before and after the trade
  • Changes in volume at-touch before and after the trade

This new service is available free of charge to registered users.

What problems does the Trade Verification Tool address?

  • Secondary markets for ETFs in Europe show a significant proportion of RFQ trading. It has been steadily growing over the past few years, and reached more than 50% in 2023.
  • Trading with non-lit mechanisms (such as RFQs or Systematic Internalisers) may expose the participant to market impact and/or information leakage and thus higher trading costs.
  • To understand the total cost of trading, market participants should review the quality of execution by using reliable post-trade analysis.
  • While an increasing number of buy-side firms observe changes in liquidity on screen while trading on RFQs, a poll during a buy-side workshop at TradeTech 2023 indicated that the majority of buy-side firms (23 out of 25) use the time of execution to benchmark execution performance when trading ETFs. This is highly inaccurate and does not provide any information on changes of liquidity during the trading process (usually several seconds either side of the RFQ execution time) such as price movement, reversion, or the widening of spreads.

With big xyt’s Open TCA platform investors are able to systematically process all orders and trades to find the most relevant information, quickly and easily, which helps with day-to-day trading decisions.