[ S U R V E Y | A L G O R I T H M I C T R A D I N G ]
Instinet
Working with approximately 1000 clients ,
Instinet supports the use of the majority of core algorithms , covering equities , ETFs and listed derivatives . However , it has been a rough 12 months for Instinet , having seen a decline in its scores for twelve of the fifteen categories covered .
This year , it received an overall score of 5.73 , and only beat the category average in two categories , anonymity and routing logic analysis .
Anonymity is Instinet ’ s strongest score , with a score of 6.03 , it is the only category to move into the “ very good ” range .
This may be where the positivity ends . Despite Instinet ’ s launch of their Micro Adaptive Sequencer ( MAS ) which Instinet boast is designed to be “ efficient , nimble and responsive to these client specific requests ” our respondents have seen a significant decline in customisation features , falling 0.59 . However , it is worth noting that last year this score improved by 0.56 , so perhaps it is last year ’ s
score that was the anomaly and this year the scores are simply settling to their original place … Next year will tell .
Customer support has seen a decline in score too , with last year being ranked as “ very good ” and this year falling to 5.91 . Very few comments were left by our respondents , but one that stands out is that there has been “ more changes than healthy in the service team ” suggesting that once these changes settle down , the score may stabilise next year .
This shift in score may also be due to an increase in respondents . The majority of response are from the UK ( 48 %) as well as from Europe ( 24 %) and the US ( 21 %), with over a third reportedly holding AUMs of over $ 50bn ( 36.5 %).
It is worth noting that around one in five traders are looking to make use of additional algorithmic trading providers in the next 12 months – down slightly from last year .
INSTINET RATINGS FOR ALGORITHMIC PERFORMANCE
Increased trader productivity |
Reduced market impact |
Execution consistency |
Cost Speed Anonymity Price improvement Customisation |
5.71 5.69 5.85 5.75 5.74 6.03 5.67 5.38
Ease of use |
Order routing logic / analysis |
Customer support |
Execution consulting |
Dark pool access |
Flexibility and sophistication of SOR |
Algo monitoring |
Average score |
5.83 5.64 5.91 5.63 5.87 5.70 5.60 5.73
KEY STATS Overall Outperformer : NO Category Outperformer : X2
6.03 Highest score
( Anonymity )
|
5.38
Lowest score ( Customisation features )
|
0.02
Most improved ( Routing logic analysis )
|
-0.59
Least improved ( Customisation features )
|
|
|
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Issue 79 // thetradenews . com // 83 |