[ 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