FlexTrade, the leading multi-asset execution and order management systems provider, today announced the rollout of FlexAlgoWheel, a sophisticated data-driven interface for algo selection. The technology incorporates real-time internal and external inputs as well as transaction cost analysis (TCA) to optimize the broker and algo selection process.
Enabling buy-side firms to configure a systematic and quantifiable decision matrix through an intuitive point-and-click interface, FlexAlgoWheel dynamically optimizes the selection of broker and algorithm, with full transparency and consistency in the best execution process, as required by MiFID II rules.
Vijay Kedia, President and CEO at FlexTrade, pointed out that, despite being a repetitive task, it was important that traders selected the right broker and the right algorithm based on diverse criteria including order characteristics, portfolio manager instructions, market volatility and relative contribution to risk in the portfolio.
Firm-wide, data-driven, unbiased consistency in the algorithm selection criteria will become the norm—said Kedia.
Many buy-side firms, utilizing over 200 brokers and a large number of portfolio managers and strategies, are implementing FlexAlgoWheel, which is available through FlexTRADER®, the company’s multi-asset execution management system (EMS).
- Access to all brokers and algorithms.
- Portfolio manager instructions and benchmarks.
- A wide range of order characteristics.
- Real-time market conditions and volatility.
- Real-time and historical TCA.
- Internally generated or external signals, such as volume, momentum or alpha predictions.
- Real-time cash management.
- Relative contribution of order to portfolio risk.
- A feedback mechanism via TCA to optimize the broker and algorithm selection process.