The TRADE 59 - Q1 2019 | Page 87

[ 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 recorded over double the percentage of responses from long-only buy-side firms com- pared to last year’s survey. Over one-third of long-only respondents for JP Morgan manage more than $50 billion of assets, while just under that figure were in the $10-50 billion AuM bracket. JP Morgan will have every reason to be disappoint- ed with its scores from long-only respondents in this year’s survey. The bank recorded the lowest aver- age score for the long-only survey with 5.28 among profiled providers, far below the average of 5.76 and a year-on-year decrease of 0.24. JP Morgan also scored the lowest of any profiled provider in six of the 15 cat- egories under review – increasing trader productivity (5.41), cost (5.16), anonymity (5.25), price improvement (5.09), customer support (5.14), and flexibility and so- phistication of smart order routing (5.09). JP Morgan's highest score in this year’s survey came in the ease of use category (5.71), followed by the dark pool access category (5.52), the latter one of only two areas where the bank recorded year-on-year increased in scores; the other being the customisation category which scored 5.40, up from 5.08 the year prior. JP MORGAN RATINGS FOR ALGORITHM PERFORMANCE Increase trader productivity Reduce market impact Execution consistency Cost Speed Anonymity Price improvement Customisation 5.41 5.29 5.18 5.16 5.50 5.25 5.09 5.40 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 5.71 5.14 5.09 5.52 5.09 5.06 5.30 5.28 KEY STATS 5.71 5.06 53% Highest score (ease of use) Lowest score: (algo monitoring capabilities) Most popular non-equity asset traded via algo by respondents: Exchange-traded funds +0.32 -0.74 55% Most improved year-on-year score (customisation) Least improved year-on-year score: (anonymity) Most used algo performance measurement method: Implementation shortfall TCA Issue 59 // TheTradeNews.com // 87