[ 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 . BEAT , Berenberg ’ s algorithmic trading offering , covers equities and ETFs across Europe , North America and Asia Pacific . Berenberg supports a number of core algorithms , including alternative liquidity seeking , implementation shortfall , market on close and VWAP . Berenberg received 29 responses from hedge fund managers in this year ’ s survey , half of which trade at least 50 % of their portfolio algorithmically . Half of respondents to the Hamburg-based bank manage US $ 10 billion or more in AUM , and most of them are based in the UK and Europe , with a couple from the US . The firm is a new entrant to the algo survey this year , and it has made a strong start with an average score of 6.02 that sits comfortably above the survey average of 5.82 . The bank outperformed the benchmarks in 14 of the 15 service areas under review in this year ’ s survey , with the strongest relative performance being its score of 6.53 in customer support , up 0.49 on the category average and ranking second across all providers profiled .
Its score for access to dark or alternative liquidity and execution consulting and pre-trade cost estimates also performed well , both scoring 44 basis points above the category average . The latter in fact ranks Berenberg top in the category , across all providers profiled in this year ’ s survey . In terms of ease of use ( 6.30 ), hedge fund respondents seem more than happy , with all but one client rating the category as either Very good or Excellent , placing Berenberg second in comparison to the other providers profiled . In contrast when it comes to cost ( 5.70 ), the number of clients rating the category as Very good or Excellent lowers to around 62 %. When asked what additional features they wanted , respondents made a number of comments calling for more automated principal liquidity , relative limits versus sector / country benchmark , the tendering of best available commission rates as provided by PT desks , the automation of non-standard settlement date requests , cash-neutral portfolio algos , and aggregation with live pro-rata fills for multiple swap and cash lines .
BERENBERG RATINGS FOR ALGORITHMIC PERFORMANCE
Increase trader productivity |
Reduce market impact |
Execution consistency |
Cost Speed Anonymity |
Price improvement |
Customisation |
Ease of use |
6.06 5.94 6.03 5.70 6.04 6.05 5.76 5.75 6.30
Order routing logic / analysis |
Customer support |
Execution consulting |
Dark pool access |
Flexibility / sophistication of SOR |
Algo monitoring |
Average score |
6.00 6.53 6.04 6.46 5.88 5.80 6.02
KEY STATS Overall Outperformer : Category Outperformer : X14
6.53 Highest score
( customer support )
|
5.70 Lowest score ( cost ) |
n / a Most improved |
n / a Least improved |
72 // TheTRADE // Summer 2021 |
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