Use Case: Sell-side and Buy-side Pre-trade TCA

Firm type Investment bank, broker, pension fund, quant fund, investment manager, hedge fund, wealth manager, insurance company, sovereign wealth fund, family office
What do you need/want to do? Traders and portfolio managers need a reliable estimate for the impact of future trades:

  • As a benchmark to reference realised (post-trade) vs estimated (pre-trade)
  • It empowers decisions around portfolio construction
  • It empowers traders’ conversations with portfolio managers
  • It empowers traders’ conversations with their brokers (risk vs agency)
  • It empowers conversations between portfolio managers and the end clients/investors
What are the alternative solutions? What are their disadvantages?
  • In-house, however this is not independent and is potentially inaccurate if using the wrong “denominators’ from the market; if buy-side this is not a key strength or focus so the uplift can be quite heavy to do it well
  • Using brokers for pre-trade risks leaking information about future trades
  • Battles over ‘desktop real estate’ mean that this information should ideally be called into the trading blotter by API web services
  • Some firms are tied to one vendor for a long time which limits flexibility and innovation in the marketplace.
What are the advantages of using big xyt’s solutions?
  • Web-based application with rich visualisations and API access to liquidity analytics of global markets
  • Our ability to deliver custom calculations into the trading blotter from an independent and non conflicted source is powerful, and unique
How long is the implementation and what resources are required from the client?
  • Our API is immediately available for those firms with in-house capability to use it
  • The onboarding process involves understanding your data model, file transfer, and demonstrating that our solution is as at least as good, if not better, than you may have already
What are the results/beneficial outcomes? What could you do now that you couldn’t do before?
  • Is your current pre-trade TCA provider (if you have one) truly independent?
  • For the buy-side, reduces the need to rely on calls to broker web services with potential information leakage