|What do you need/want to do?
- IR departments are often behind their own investors and creditors in having insight to market behaviour
- With better information they can be proactive in explaining share price movements that are not specific to the firm (e.g. low liquidity situations and index/sector events where investor activity amplifies share price movements)
- IR has little insight into monitoring for large trades that could affect long term ownership and may require defensive positioning
- Cost to the firm of poor stakeholder management can weaken share price if demand for shares falls; creditors may increase financing costs if there is a perception of weakness or low liquidity
- CFO/treasury has little access to microstructure information or pre-trade support tools that can help them to understand trade scheduling or strategies and they are completely reliant on their brokers (they do not have resources to monitor the microstructure or analyse performance)
|What are the alternative solutions? What are their disadvantages?
- Mostly in-house or broker provided solutions via reports or generic screening tools
- Market data terminals can be used as a feed; these tools can be unsophisticated and inflexible
|What are the advantages of using big xyt’s solutions?
- Requirement for sector and index comparisons for all metrics
- Price/size distribution information (single stock analytics view)
- Single stock options
- Notifications of significant events (large trades and share price movements)
Open TCA for Execution Analytics
- Single stock pre-trade
- Simple post-trade TCA
|How long is the implementation and what resources are required from the client?
- Tools are provided ‘out of the box’ without the need for any integration except for post trades
- This can be via file upload as it is only ever one day’s trading and one stock
- Possible option to white label for a corporate broker
|What are the results/beneficial outcomes? What could you do now that you couldn’t do before?
- Investor relations departments – monitor and understand behaviour of the share price in context of peers and markets as a whole to improve communications with investors
- CFO/treasury departments – support trading activities (buy backs, new issues) by helping to formulate execution strategies and monitor broker performance
- Better stakeholder management for investors and creditors can maintain demand for shares particularly during challenging market conditions; for example, data can be used at AGMs and in shareholder documents such as prospectuses
- Better performance of trading activities via more hands-on approach with brokers