ThinkLiquidity Unveils Transaction Scoring System

US-based
technology firm ThinkLiquidity has launched a transaction scoring system
featured in its new Web application QuantView.

The patent
pending system delivers performance metrics on trades conducted over electronic
trading platforms. The firm says QuantView data can be used by trade desks and
risk managers to quickly and accurately assess order flow and improve risk
management.

“There’s no
other product available that makes it so easy to see key trading metrics on
both a micro and macro level,” claims ThinkLiquidity’s managing director Jeff
Wilkins. “Smaller shops often do risk management from the bottom up, looking at
individual accounts. Our scoring system grades every trade and assembles the
data into an account scorecard.

“Larger
brokerages and trading desks are more concerned about risk limits and want
insight into when and what to hedge,” he continues. “We aggregate all the data
we have on individual trades to provide context on market exposures. Risk
managers can use this data not only to better categorise individual accounts
but position themselves to better take advantage of market conditions.”

The
transaction scoring system was developed in house and rates the entry, exit and
overall quality of every transaction passing through the computation engine and
assigns scores. “The scores can be used to determine whether a trader is good,
bad, lucky or skilled,” explains Wilkins.

The firm
says that most OTC brokers view their risk in terms of A Book and B Book,
adding that the decision to A or B Book a particular account can often be due
to external factors rather the calibre of the trader. QuantView lets brokers
view their exposure by various meaningful attributes rather an arbitrary A Book
or B Book classification, it says.

“It
used to be hard to view real time exposure on different segments of your book,”
says Wilkins. “QuantView makes it easy. For example, you can filter by average
hold time to see how short term traders are positioned. You could filter by
average trade size to see the exposure on the big traders. We keep all kinds of
statistics that can be used to segment your exposures.”
    

Colin Lambert

Share This

Share on facebook
Facebook
Share on google
Google+
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit

Related Posts in