NEX Markets has launched a new suite of analytical tools on its EBS FX trading platform that seeks to match the sophistication levels of those available at banks and trading firms, however at market level.
NEX Quant Analytics was launched today and uses benchmark data taken from the entire EBS ecosystem. It delivers “real and measurable” insight for clients into their own trading activities and the ability to look at their performance versus that of their peers.
With execution quality taking a more prominent role in FX market participants’ thinking, especially around their market impact, the timing would appear to be good for the firm.
The new service helps clients analyse their individual and relative performance and conduct regular reviews to improve future performance. It also provides clients greater insight into their bi-lateral trading relationships, their possible profitability versus EBS averages for similar trades across the EBS community, liquidity provider performance, where markets traded, order book arrival times, spreads and liquidity at top of the book. ?
“We are going to be providing detailed trade analysis to both liquidity consumers (LCs) and providers (LPs) – they will see the same data,” says Tim Cartledge, global head of FX and head of product at NEX Markets. “Quant Analytics will help clients enhance their trading execution experience by enabling them to better understand how their performance stacks up against the EBS community average, their market impact and their cost of trading. It should also help LCs obtain tighter spreads, lower reject rates and reduced market impact.”
“For the LP, we will show them how they are handling client flow compared to their peers,” he continues. “We think Quant Analytics will solve some of the problems resulting from how LPs and LCs engage with each other and strengthen their relationships – the benefits on EBS Direct and EBS Select in particular will be significant.”
Clients can access the data via regularly scheduled reports, tailored according to need, through their sales and relationship managers and individual dashboard access for clients upon request. For individual clients, data with their trading partners will be specified, while community-based comparable data will be anonymised to provide an overall picture. Overall, data will demonstrate the impact of trading for both individual clients and the market as a whole.
Seth Johnson, CEO of NEX Markets, says, “There’s never been such a comprehensive analytics tool based on the broader trading community before. NEX Quant Analytics will be invaluable for clients wanting to improve their execution and is the latest development in NEX Markets’ drive to create a fairer, more transparent and healthier trading environment in the FX market.” ?
Cartledge believes that new analytics suite offers a level of granularity that does not exist elsewhere in the market. “A lot of participants in the FX market don’t have these analytical tools or the resources to be able to access them externally,” he explains. “Helping these participants to better assess and nuance their streams, trading strategies and execution policies is a powerful proposition – we believe this represents the most useful set of analytics available to the broader market to date.”