The Gateway to Algorithmic and Automated Trading

Plato Partnership and LiquidMetrix Research co-operate to assess block trade performance

First Published 24th April 2017

Companies to research, design and implement a stronger methodology for assessing block trade performance.

Mike Bellaro, Plato Partnership

Mike Bellaro, Plato Partnership

Plato Partnership has announced its intention to enter into a cooperation agreement with LiquidMetrix, the best execution specialists and an operating division of Strategic Insight (SI). Under this new partnership, the two companies will research, design and implement a stronger methodology for assessing block trade performance

Through this cooperation, Plato will work with the LiquidMetrix research & development team to jointly design and implement a consistent framework for assessing block trade performance. This will enable firms to assess the execution quality achieved by block trading both in absolute and relative terms between different block venues versus other execution options.

MiFID II will have a significant impact on many aspects of trading in Europe. Limits on dark pool trading and the disappearance of current BCN models are likely to drive innovations in how and where trades are executed. RTS 28 requirements on sell sides and buy sides will focus attention on how effective firms are in sourcing liquidity and achieving best execution for their clients in this new landscape.

Mike Bellaro, Plato Partnership Co-Chair, commented: "If block trading is to become more widely adopted we need a comprehensive and universally accepted framework for measuring block execution quality. This is exactly what we are looking to develop with LiquidMetrix. To date, traditional Transaction Cost Analysis has not done a good job in allowing such relative comparisons to be made. Block trading analysis requires careful risk adjusted measurement of performance to allow fair comparisons with algo trading. TCA often focusses mainly on what is completed, ignoring or side stepping opportunity costs."

  • Copyright © Automated Trader Ltd 2018 - Strategies | Compliance | Technology

click here to return to the top of the page
content