[ A L G O R I T H M I C T R A D I N G S U R V E Y ]
Berenberg
Berenberg is one of the world ’ s oldest banks and is currently one of Europe ’ s leading privately-owned banks . Its algorithmic offering is called BEAT and supports a range of core algorithms including alternative liquidity seeking , implementation shortfall , market on close and VWAP . In addition to its liquidity access offering , the Hamburg-based bank is a registered market marker and has direct memberships at a range of exchanges across Europe . The firm ’ s algorithmic offering covers equities and ETFs in Asia-Pacific , Europe and North America . In terms of number of responses , Berenberg received 74 responses from long-only managers in 2021 , placing it fourth highest among its peers . The firm is a new entrant to the survey this year and has made a strong start with an average score of 5.98 , that sits comfortably above the survey average of 5.81 . The firm outperformed the category average across all 15 service areas under review with its strongest relative performance being its score of 6.41 in customer support , an impressive 40 basis points above the category average .
Berenberg also scored particularly well in execution consistency (+ 0.26 ), dark pool access (+ 0.22 ), execution consulting and pre-trade cost estimation (+ 0.21 ) and price improvement (+ 0.20 ). Its lowest score was for customisation features , which came in at 5.67 . This chimes with comments on clients wish lists such as “ the ability to move strategy easily , and to move from dark to lit venues when appropriate ” and “ greater flexibility to combine various algos to create custom usage on the fly ". One respondent has called for “ greater actionable TCA ”, highlighting the important role played by technological innovation in increasing transparency and shrinking costs . Exactly half of all long-only respondents to Berenberg in this year ’ s survey trade at least 50 % of their portfolio algorithmically . The most commonly used algorithms were dark or alternative liquidity seeking algos and VWAP . Berenberg ’ s long-only clients that responded to this year ’ s survey were mostly from Europe with a handful from the US and just under a third ( 30 %) managing more than US $ 50 billion in assets .
BERENBERG RATINGS FOR ALGORITHMIC PERFORMANCE
Increased trader productivity |
Reduced market impact |
Execution consistency |
Cost Speed Anonymity Price improvement Customisation |
6.15 5.88 6.16 5.87 6.04 6.06 5.86 5.67
Ease of use |
Order routing logic / analysis |
Customer support |
Execution consulting |
Dark pool access |
Flexibility and sophistication of SOR |
Algo monitoring |
Average score |
6.18 5.82 6.41 5.80 6.14 5.90 5.83 5.98
KEY STATS |
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6.41 Highest score ( customer support ) |
5.67 Lowest score ( customisation ) |
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80 // TheTRADE // Spring 2021 |
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