The TRADE 68 - Q2 2021 | Page 77

Instinet

Instinet offers institutional clients a full range of core algorithms , covering equities , ETFs and listed derivatives markets , globally . The firm ’ s longstanding investment in and commitment to technology has made the move to remote working a comparatively smooth transition , aiding growth over the past year in terms of volume traded , market share and new business . “ Core institutional buy-side clients ’ market share is at an all-time high ”, states Instinet in its provider submission to the survey , with approximately 1,000 clients actively using the New York-headquartered agency broker ’ s algorithms . Dramatic increases in growth of wallet share with the top 150 accounts ( by AUM ) have also been reported . Instinet received an overall average score of 5.93 , beating the survey average by 11 basis points . Onethird of the hedge fund respondents manage upward of US $ 50 billion in assets . Respondents came from North America , Europe and the Asia-Pacific . Seventy-five percent of managers who selected Instinet as a provider execute at least half of their portfolio value algorithmically . Instinet outperformed the category average in 10 out of 15 service areas under review , most notably in customer support , with a score of 6.46 (+ 0.41 ) and cost , with 6.19 (+ 0.40 ). Instinet ’ s score for cost , along with flexibility and sophistication of SOR (+ 0.39 ) and anonymity (+ 0.37 ) ranked highest of all providers profiled . In stark contrast however , the firm underperforms the survey benchmarks in five categories , most notably in execution consistency ( -0.25 ), increase trader productivity ( -0.18 ) and data on venue / order routing logic or analysis ( -0.18 ). Instinet garnered too few responses to be included within the provider profiles published in 2020 , however it remains noteworthy that year-on-year increases were observed in five categories - including flexibility and sophistication of SOR (+ 0.28 ) - whilst notable declines were recorded across 10 aspects of service , in particular execution consistency ( -0.98 ) and reduce market impact ( -0.87 ). In terms of additional features that respondents would like to see , respondents commented on wanting on-trade AI and more consistent consultation .