Plato to Bring Algo-Powered TCA Platform ClarityReveal to Europe

Plato The not-for-profit company will be introducing BabelFish Analytics’ ClarityReveal to the European market in 2020 as Plato-Clarity. The trade cost analysis platform uses algorithmic data to delve into unfilled routes, which represent the vast majority of implementation actions and the potential impact. It then compiles the data into dashboards that offer actionable answers to questions around execution efficiency.

According to the announcement, European buy and sell-side market participants can use Plato-Clarity to better understand algorithmic trading challenges such as:

  • The efficiency of an algorithm’s routing sequences to venues
  • If internalization practices are improving or hindering performance
  • If transaction fees and rebates are aligned with best execution metrics
  • Helping traders align their execution tools with their order flow
  • How to effectively apply minimums to maximize fill rates and minimize ‘toxicity’.

Almost 40 brokers in the United States are using ClarityReveal to provide both filled and unfilled routes. Banks, major agency brokers, as well as brokers using all the major algorithmic management systems for both high and low touch desks have integrated the solution, according to the firm. BabelFish will be Plato’s preferred partner for comprehensive buy and sell-side venue and routing analytics, offering third party performance evaluation of brokers, algorithms, and venues.

Mike Bellaro, CEO of Plato Partnership, commented: ”Plato Partnership is committed to improving the marketplace for all participants, across the buy and sell-side. This new partnership with BabelFish Analytics marks a major step forward in improving best execution practices across the European equities market. The big issue that we hear from many of our members in Europe is that the tools to effectively process exposed data into actionable insights simply don’t exist. Plato-Clarity will plug that gap, and Plato Partnership is delighted to be able to provide this technology to our members.”

Richard Worrell, Head of EMEA Equity Trading at Janus Henderson said: “We are always seeking new and innovative ways to generate and optimize returns for our investors. Ensuring that our customized algo suite is performing as effectively as possible is an ongoing challenge, and so any solution which helps improve trade execution is extremely valuable. Plato-Clarity will offer a more comprehensive analytics solution than any other platform currently available in Europe. We believe this to be the next generation of TCA, truly looking “under the hood” at routing logic with their Sequencing study and Internalisation study. While ClarityReveal was a milestone innovation for the US market, Plato-Clarity can do the same for Europe.”

Thomas Bourgeois, Co-Head of Electronic Trading at Exane BNP said: “As the European equity market rapidly evolves, we must continue to invest in our Trading and Execution Consulting capabilities to ensure we deliver Best Execution for our clients. The arrival of Plato-Clarity gives investors an innovative solution that ensures that their orders are being routed most effectively. Plato-Clarity gives our clients a simple and efficient way to successfully navigate an increasingly complex execution marketplace.”

Linda Giordano, Co-Founder, and CEO of BabelFish Analytics said: “Since our formation in December 2016, BabelFish Analytics has worked to fulfill the critical need for greater transparency in the routing process. Not only does ClarityReveal satisfy MiFID requirements, but it finally brings a practicality and effectiveness to TCA that has been profoundly needed for decades. We are determined to continue to provide more and more firms with access to this vital information. Enabling traders to add value and efficiency to their process is at the core of our mission at Babelfish, and this collaboration with Plato Partnership will allow us to bring ClarityReveal to the European market.”