Virtu Financial, which provides trading technology and liquidity, announced the continued expansion of its execution services offering with the launch of Prism Frontier, a post-trade analytics tool designed to provide transparency and forensics around client executions.
In order to perform meaningful analysis of execution quality, investors require transparency and data regarding how their orders are handled, Virtu says in a statement announcing the launch. This is not easily achieved, as it requires an entire trading system built around this purpose, it continues. To that end, Virtu’s algorithms are built around trader intuition with simple principles in mind, based on information about a given order and the prevailing market activity. This produces a trading strategy with specific intentions whose results are easily measured.
“Virtu’s algos don’t over-complicate the task they’ve been assigned,” says Steve Cavoli, global head of Virtu Execution Services. “They digest massive quantities of market data, in real-time, and make appropriate decisions. When the trade is complete, Prism makes it easy to review the results. This is TCA for a trader. It’s a practical review of execution.”
Prism Frontier includes Prism Post-Trade, which Virtu says provides conventional post-trade analysis augmented with algorithm-specific performance metrics, raw liquidity codes on executions from Virtu’s ATS’ and mark out analysis on fills based on the child order’s intention. It also includes Prism Real-Time – which is due for release in Q3 – which will enable traders to monitor executions in real time, with a focus on harmonising fills with Virtu’s optimised market data at granular time increments.