The TRADE 2019 Algo Survey - Hedge Fund | Page 14

[ A L G O R I T H M I C T R A D I N G S U R V E Y ] Exane BNP Paribas E xane BNP Paribas was one of the two standout performers of this year’s hedge fund survey, alongside Bernstein. The firm recorded a signifi- cantly higher percentage of responses to this year’s survey, with the vast majority of hedge fund respon- dents from small to mid-cap AuM brackets, with just 12% of firms managing more than $10 billion. The broker recorded the second-highest average score of all profiled providers in this year’s survey with 6.06, marginally behind Bernstein (6.08), an increase of 0.65 year-on-year. Exane BNP Paribas received several noticeable year-on-year improvements from respondents, including those for price improvement (up 1.16), increasing trader productivity (up 1.04), speed (up 0.94), execution consistency (up 0.84), cost (up 0.83), dark pool access (up 0.80) and reduc- ing market impact (up 0.70). The firm also recorded the highest scores of all profiled providers in six of the 15 functional performance categories under review, including one of the two new categories in- troduced this year, data on venue/order routing logic or analysis (6.14). The only area in which Exane BNP Paribas saw a year-on-year decline was for execution consulting, which dropped 0.15 in this year’s survey, a relatively modest decline in line with the survey average. EXANE RATINGS FOR ALGORITHM PERFORMANCE Increase trader productivity Reduce market impact Execution consistency Cost Speed Anonymity Price improvement Customisation 6.07 6.24 6.18 6.09 6.32 6.20 5.98 6.05 Ease of use Customer support Execution consulting Dark pool access Flexibiltiy and sophistication of smart order routing Algo monitoring capabilities Data on venue/order routing logic or analysis Average score 6.15 6.24 5.58 5.77 5.96 5.94 6.14 6.06 KEY STATS 6.32 5.58 50% Highest score (speed) Lowest score (execution consulting) Most popular non-equity asset traded via algo by respondents: Listed derivatives +1.16 -0.15 38% Most improved year-on-year score (price improvement) Least improved year-on-year score (execution consulting) Most used algo performance measurement method: Implementation shortfall TCA 90 // TheTrade // Summer 2019