Trading technology vendor S3 has launched a suite of execution quality tools that are designed to maximize the quality of liquidity sought by both the buy- and sell-side.
The system, dubbed “Buy-Side Execution Quality Suite,” allows both the buyside and its brokers to target liquidity in the best fashion, such as finding natural contra-orders, in both the equities and listed options markets.
The new features and measures are in addition to S3’s existing suite of match types – which includes millisecond, quote-before-trade and window match. S3 adds several different benchmarks, including volume weighted average price (VWAP), time weighted average price (TWAP), arrival time and previous close allowing the buyside to compare their executions to more than just a point in time quote.
S3’s Buy-Side Execution Quality Suite incorporates new information that can be used to evaluate the quality of order handling and execution, including new benchmark comparisons, volume comparisons, additional filtering options and additional statistics.
“By providing institutions with a tool to objectively compare brokers, and the Sell-Side with a mechanism to increase transparency, we hope to improve the trust between market participants,” said Mark Davies, chief executive at S3.
Adding full breadth volume and relevant statistics allows the buyside to compare their executions against all the liquidity available at the time they placed the order, and to see how much of that liquidity they were able to capture at their desired price.
