[ A L G O R I T H M I C T R A D I N G S U R V E Y ]
ITG
ITG was the standout performer in this year’ s hedge fund algo survey, outscoring the survey average in all but one category and garnering the highest score in eight of the 14 categories reviewed by respondents, despite recording a small decrease in percentage of hedge fund respondents year-on-year. Respondents were primarily from the small-to-midsized AuM bracket, while one-third manage more than $ 50 billion of assets. Half of ITG respondents have used algos to trade ETFs over the past year, while one-third have been active in listed derivatives, and two-thirds of respondents recorded increased usage of ITG algos year-on-year. One-third of respondents said they are considering using algos from other providers, with functionality for SI routing highlighted as desired.
One of the few providers to receive increased yearon-year scores from hedge funds for this year’ s survey for most of the categories reviewed, ITG saw only its cost score decrease this year, from 5.4 to 5.2. Respondents handed out scores of over 6 for ITG’ s reducing market impact, anonymity, price improvement, execution consulting, dark pool access and customer support, while the firm also beat the survey average in every category except cost. It’ s most significant increase came in the price improvement category, which rose from 5.17 last year to 6.37 in this year’ s edition of the survey, while almost attaining a perfect score in the customer support and ease of use categories, which both scored 6.75.
RATINGS FOR ALGORITHM PERFORMANCE 2018 2017
Improve trader productivity
Reduce market impact
Execution consistency
Cost
Speed
Anonymity
Price improvement
Customisation
Ease of use
Crossing
Customer support
Execution consulting
Dark pool access
Smart order routing capabilities
5.97 5.60
6.20 5.51
5.83 5.47
5.20 5.40
5.81 5.75
6.21 5.88
5.17
5.33
6.37
5.65
6.75 6.10
5.73 5.45
6.75
6.11 6.16
5.44
6.72 5.72 5.73
5.26 0.00 1.0 0 2.00 3.00 4.0 0 5.00 6.0 0 7.00
88 // TheTrade // Summer 2018