[ A L G O R I T H M I C
T R A D I N G
S U R V E Y ]
JP Morgan
J
P Morgan saw a slight decrease in the percentage
of responses from hedge funds in this year’s survey.
One-third of respondents for the bank manage more
than $50 billion of assets, while the remainder call
came from mid-sized AuM brackets. Around half
hedge fund respondents indicated that they are using
JP Morgan algos to also trade foreign exchange and
listed derivatives. Two-thirds of respondents said that
their usage of the bank’s algos had increased year-on-
year, some as much as 15%, while under one-quarter
said they are considering adopting algos from other
providers in future. Desired algo functionality includ-
Morgan regarding fills and
ed greater depth of JP
information
wider foreign exchange portfolio capabilities.
Improve
While JP Morgan has placed
emphasis
Year significant trader
2018
2017
RATINGS FOR ALGORITHM PERFORMANCE
productivity
5.90
on its support and consulting services for algorithmic
trading in the recent past, responses from its hedge
fund users indicate mixed results. The bank saw a
year-on-year increased score for its execution consult-
ing capability, although its customer support rating fell
over the period. However, JP Morgan outperformed
the survey average for customer support, but not in
execution consulting, the only category where it failed
to do so. There were also year-on-year score increases
in the improving trader productivity, reducing market
impact, anonymity, price improvement and dark pool
access categories for JP Morgan, although most of the
bank’s ratings stayed consistent with last year’s results.
The most significant decrease came in the customisa-
Reduce
Execution
tion category, which
dropped by 0.62
year-on-year. Speed
Cost
market impact
consistency
5.85
5.81
5.78
5.78
5.42
5.79
5.71
5.73
2018
2017
5.90
5.81
Improve trader productivity
Reduce market impact 5.85
5.78
Execution consistency 5.78
5.79
5.42
Cost
5.71
5.73
5.79
Speed
6.07
6.05
Anonymity
5.53
5.41
Price improvement
5.37
Customisation
5.99
5.85
6.02
Ease of use
5.36
Crossing
5.62
5.79
Customer support
6.09
5.54
5.46
Execution consulting
Dark pool access 5.77
5.72
Smart order routing capabilities 5.63
5.77
0.00
1.0 0
2.00
3.00
4.0 0
5.00
6.0 0
7.00
Issue 56 // TheTradeNews.com // 89
5.79
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