Liquidnet, the leading institutional trading network, announced the newest addition to its Virtual High Touch suite. Powered by data and analytics from OTAS Technologies, Liquidnet is launching Best Ex Replay.
The new product serves as a memory tool as it enables traders to recall precise market conditions to explain the context of execution decisions as well as investigate orders that experienced exceptional market conditions.
Additionally, the product helps financial services firms to meet regulatory reporting requirements such as MiFID II while traders are able to provide detailed execution feedback to Portfolio Managers.
Natasha Shamis, Global Head of Product at Liquidnet, said: “What we’ve heard from our global Membership is that every minute that goes into manual, administrative tasks such as compliance requests and best execution analysis—while valuable—is time that comes at the expense of alpha generation. Traders need to spend their time on achieving best execution, not proving it. That’s what Best Ex Replay is for.”
Mark Pumfrey, Head of Liquidnet EMEA commented: “The recent introduction of MiFID II in Europe has accelerated global regulatory pressure on firms to deliver constant, detailed, and systematic best execution analysis. Best Ex Replay delivers meaningful execution and market information in a convenient and timely way—a broker-neutral solution covering most equity names in the US, Canada, developed Europe, Hong Kong, and Australia, whether or not an order is executed on Liquidnet.”
With Best Ex Replay, traders are given an option to run a Performance Report on an execution based on order details that they provide, which is particularly useful with MiFID II best execution requirements. The software provides detailed information regarding the trading conditions on any specific date, with market microstructure charts and analysis covering return, volume, liquidity, and spread.
“We are increasingly seeing firms embrace technology-driven solutions to keep up with ever-growing regulatory obligations. Liquidnet’s Best Ex Replay foreshadows the critical role technology will play as the buy-side trader becomes more and more accountable for best execution”, added Sang Lee, Co-Founder and Managing Partner of Aite Group.
The company has been announcing innovations within its High Virtual Touch offering, including Targeted Invitations for Algos, which allows buy-side traders to seek out additional block liquidity by sending actionable invitations within the Liquidnet community, while still keeping both sides of the trade anonymous.
Patrick Strobel was recently appointed to lead the Technology department in the EMEA, where he is focusing on the region’s Virtual High Touch MiFID II solutions.
