Tradefeedr, the FX data analysis platform has partnered with Goldman Sachs, UBS & XTX Markets as the first participants on its platform.
Co-founded in 2018 by industry veterans Balraj Bassi and Alexei Jiltsov, Tradefeedr is an independent intermediary which aggregates, analyses and disseminates trading information between capital market participants to aid data-driven decision making.
“Today trading information is siloed, counterparty data dialogue is full of friction and there is a lack of reliable benchmarks or rankings, says Bassi. “Tradefeedr’s goal is to consolidate the world’s FX trading information into a permission-driven global database that can transform the way in which market participants interact with each other and deliver new insights for all users.”
Liquidity optimisation requires a dialogue based on common data and metrics. Tradefeedr users can share a desired sub-set of their analysis with their counterparties to aid data driven optimisation and collaborate with other users of the platform to build benchmarks. One such initiative is a global FX algo book where users can pool algo runs across providers to improve accuracy of performance statistics and create greater transparency for the market.
“Tradefeedr was born of the fact that to achieve better execution both liquidity providers and liquidity consumers need to engage better and what was missing in that interaction is a common data platform,” says Jiltsov. “For the first time FX players can use and query a dedicated trade-event repository to share relevant metrics without revealing sensitive details.”
Clients can optimise their stack of liquidity providers, fine-tune relationships with individual liquidity providers, compare the quality of liquidity provision across common metrics and design liquidity experiments – such as adding or removing liquidity provision – with measurable outcomes. Common parameters and metrics promote transparency and decrease information asymmetry in the market.
The firm says it aims to level the trading analytics playing field by making onboarding seamless and allowing LP’s to submit trading data on behalf of their buy-side clients. It gives each client the power of using tick level infrastructure without associated costs and has a separate, tailored analytical package for GUI, API and algo flow.
“We see a growing number of market participants looking for independent, third party evaluation of our algos [and] welcome this transparency which allows clients to make informed choices in their selection of an algo provider,” says Christian Gressel, global head of electronic sales trading, UBS.
“Tradefeedr will enable liquidity providers and clients to analyse and have conversations about data together on a shared platform,” says Jeremy Smart, global head of distribution at XTX Markets. “For many buy-side firms, this is the first time they’ve had access to such sophisticated, independent analytics and been able to evaluate all their liquidity providers – for risk-transfers and algorithms – in one place. More transparency and more informed clients will result in a fairer market for all.”
Nick Robinson, head of trading at Insight Investment Management, adds, “Insight Investment is committed to delivering a best in breed FX offering and initiatives that support the principles of the FX Global Code. Tradefeedr promotes greater transparency and understanding of liquidity provision and market microstructure in FX, improving understanding of execution for all market participants. This is something Insight Investment is keen to actively encourage at every opportunity.”
Over the coming weeks Tradefeedr says it will be continuing to onboard more institutions on its way to building an industry wide data utility.