The TRADE 79 - Q1 2024 | Page 84

[ S U R V E Y | A L G O R I T H M I C T R A D I N G ]

Looking at recent developments , last year , JP Morgan expanded its rates algo franchise to support the wider electronification of rates trading . The expansion made JP Morgan ’ s rates algo offering equal to its long-standing FX offering .

For the second year in a row , JP Morgan saw a fall in their average overall score , coming in at 5.62 . Across the board there has been steady declines in the scores , with each category only falling into “ good ”, with not a single score managing to be awarded as a category outperformer .

Taking the top spot , however , is ease of use , with a score of 5.91 , this is up marginally from last year .

Although respondents ’ comments are sparse this year , one response that stands out says the “ pre / post-execution is the best ” perhaps encouraging this boost in the score . Similarly , it may have influenced the slight uptick in the increase trader productivity category , which moved up three basis points since last year .

What is interesting is that when it comes to algo monitoring , JP Morgan scored in the bottom three places , across our surveyed providers . This is particularly noteworthy as one trader commented that it is “ an excellent algo , top 5 for me ”. So , while it may not be up to everyone ’ s standards , there are still long-only managers who are happy with the algo ’ s provided by JP Morgan .

Only 13 % of buy-side traders reported to looking to make use of additional algorithmic trading providers in the next 12 months , down significantly from the 23 % last year .

JP MORGAN RATINGS FOR ALGORITHMIC PERFORMANCE

5.86 5.66 5.67 5.69 5.69 5.65 5.50 5.35

5.91 5.41 5.76 5.45 5.79 5.51 5.35 5.62

KEY STATS Overall Outperformer : NO Category Outperformer : NO