Specialist trading analytics company ExeQution Analytics officially launched this month with the goal of helping both buy- and sell-side firms use data and bespoke analytics to make better trading decisions.
“Every firm is unique in their flow, their strategies and what’s important to them, and off-the-shelf analytics simply can’t explain the underlying drivers of performance,” said CEO Cat Turley. “Firms are paying so much for data, and it’s imperative to fully capitalise on that investment with efficient and effective analytics.”
For buy-side firms, this should lead to lower implicit costs and an improved ability to evaluate both their brokers and algo wheels. For the sell-side, customised analytics help firms better understand and improve trading strategies to deliver better performance to customers. ExeQution Analytics foundation clients include a sovereign wealth fund and a Hong Kong trading bank.
“The volume of data and complexity of trading has grown exponentially in the past ten years, yet innovation in trading analytics has not kept pace,” Turley said. “As trading shifts towards more dynamic, learning-based models, understanding and measuring the incremental value of trader decisions, strategy behaviour and model outputs becomes increasingly critical. 80% of trading costs are implicit and these costs can be dramatically reduced by proper analysis and understanding of trading patterns.”
With offices in Sydney and Hong Kong, ExeQution Analytics integrates the ExeQution Analytics Framework with client data and then builds bespoke analytics, visualisations and reports that traders, quants, IT and the C-suite can all use to understand exactly how every aspect of trading is performing, in both real time and historically. Head of strategy Rob Hodgkinson said that understanding proprietary data would become increasingly vital to trading firms as the data universe continues to expand.
“I’ve been working in capital markets since 1979, focussed on tick data, trading platforms and analytics, and what I’ve seen consistently over that time is that companies that invest in their own data capabilities are far likelier to outperform,” he said. “These types of analytics systems are complex and slow to build internally, and resources are constantly in demand to meet day-to-day requirements. Cat and her team speak IT, quant and trading and can build in weeks what would take an internal team a year or more, and importantly, ensure all the teams inside that firm can use it pragmatically to optimise outcomes and reduce costs.”
The ExeQution Analytics Framework can be integrated with existing tick capture systems and align with an existing technology stack. The team develop and deploy custom analytics and visualisations across Windows, Mac, and Linux operating systems using kdb+/q, C/C++, Python, R, Java and Javascript. The Framework integrates with execution and market data feeds amongst other sources. ExeQution Analytics have deployed bespoke solutions for clients in prop trading, asset management and broking across all exchange-traded asset classes.
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