NEW YORK, Dec. 7, 2015 /PRNewswire/ -- Trade Informatics, a quantitative research and analytics firm specializing in transaction cost analysis (TCA) and automated trade execution services, recently spoke at the CQAsia Quantitative Research Conference in Hong Kong. This conference brought together some of the leading practitioners in the quantitative investment industry from around the world.
The Trade Informatics presentation, titled "Where Did My Alpha Go? Why Trading Matters!", demonstrates why trade execution is important to the overall investment process and how firms, armed with the right research and execution tools, might be able to enhance their execution management process, lower their trading costs and improve their overall investment outcomes.
In examining millions of trade executions from automated execution platforms, Trade Informatics discovered that the quality of dark pools varied greatly. Some pools have fill rates less than a third of those with the best fill rates among those compared, while also having suboptimal fill prices. Most interesting is that the variation in dark pool quality is highly correlated with the speed at which the pool reports trades to the tape – perhaps indicating differences in the technological capabilities among the pools.
Trade Informatics also presented innovative research into pre-trade rule discovery – finding the optimal trading rules and schedule to trade certain types of orders. Using advanced data science techniques, TI was able to show how a set of optimized rules might improve a trading strategy and lower the overall execution costs. Novel in this approach was the inclusion of stock selection characteristics from the portfolio management process – thus tying together the trading strategy with the overall portfolio management objectives.
Finally, Trade Informatics demonstrates how this trading research can be implemented in a systematic way by offering the buy-side customized, automated trading strategies that incorporate their trading research and allowing more control of the overall execution process.
About Trade Informatics: Trade Informatics LLC is a privately-held firm with offices in Purchase and the Empire State Building in New York. Its sole mission is to help clients maximize returns by minimizing their costs. Trade Informatics serves institutional clients worldwide via a vertically-integrated platform of cutting edge quantitative analytics, automated trading solutions, and execution services. Trade Informatics understands the challenges facing institutional clients in an increasingly complex global trading landscape and utilizes their collective market expertise and trading savvy to arm portfolio managers and traders with the sophisticated tools and visibility they need to gain transparency and outperform. Trade Informatics is a member of FINRA and SIPC. For more information about Trade Informatics, go to: www.tradeinformatics.com.
About CQAsia: CQAsia is the Asian Chapter of the Chicago Quantitative Alliance (CQA). CQA was founded in Chicago, Illinois, USA in 1993. The organization quickly outgrew its Chicago roots and is now international in scope. The CQA is a professional investment organization comprised of leading quantitative investment practitioners from around the world. The CQA membership includes investment managers, academics, plan sponsors, consultants, and other investment professionals. The primary goal of the CQA is to facilitate the interchange of ideas between quantitative professionals.
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SOURCE Trade Informatics