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Tora launches AI-driven pre-trade analytics

First Published 5th December 2017

TORA launches AI-driven pre-trade analytics tool to help firms meet stricter MiFID II best execution requirements

TORA, provider of a cloud-based order and execution management system (OEMS), has announced the launch of its artificial intelligence (AI)-driven pre-trade transaction cost analysis (TCA) solution to help firms meet the stricter best execution requirements imposed by MiFID II.

TORA's new AI TCA product uses AI techniques to estimate price slippage for trades before they enter the market. The addition of the pre-trade TCA product to the TORA OEMS can help traders to monitor costs across the lifecycle of a trade and improve investment decision making.

Utilizing a library of historical global market data, the new pre-trade TCA solution examines the core attributes of orders such as spread, volatility and volume consumption and estimates the market impact of using any broker and algo combination to help traders determine the optimal place to send their orders.

"This TCA solution is built upon a convolutional neural network that is trained using real time and historical data. Machine learning algorithms are used to continuously capture new order data as it becomes available. Through this feedback mechanism the network weights are adapted to reflect the additional information and thus increase the estimation precision over time", said Pascal Kuyten from the TORA quantitative research group.