The TRADE 79 - Q1 2024 | Page 89

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RBC Capital Markets

RBC covers all the core algorithms , as well as

AI-powered VWAP and Arrival Price Algo , covering equities , ETFs , foreign exchange and listed derivatives . Up from 2023 , this year RBC received 67 responses , with the majority in the UK ( 45 %), Europe ( 30 %) and the US ( 18 %), with 31 % reporting to have an AUM of $ 50bn or more .
Although RBC did not beat the overall average , it did in six of the thirteen categories . Customer support ( 6.14 ) and anonymity ( 5.98 ) take the top spots , having moved up 0.25 and 0.18 points respectively since last year . They have also seen the largest annual shift . Ease of use takes third place , just below the average sitting at 5.92 , up 10 decimal places since last year . This is reflected in client ’ s comments , with the helpfulness of the team and the care and execution with which trades are carried out .
At the other end is customisation features ( 5.38 ) are down 0.22 . However , it is flexibility and
sophistication of smart order routing that has seen the greatest downturn this year , dropping 0.32 since 2023 and sitting firmly below the average . The firm , in fact , scored in the bottom three for this category when compared to the other providers in this report .
Interestingly when it comes to speed , RBC ’ s clients rated them 5.91 for two years in a row , just under the “ very good ” category , yet it is something which has been mentioned a handful of times in the client comments , particularly when linked to the firm ’ s speed and aggression . It would seem that RBC ’ s clients are happy with plenty of what it is doing .
Of course , this doesn ’ t mean they aren ’ t looking to other places , with 31 % of respondents reporting that they will be considering using additional algorithmic trading providers in the coming 12 months , in particular Cowen and Jefferies getting several mentions each as a consideration .
RBC CAPITAL MARKETS RATINGS FOR ALGORITHMIC PERFORMANCE
Increased trader productivity
Reduced market impact
Execution consistency
Cost Speed Anonymity Price improvement Customisation
5.94 5.78 5.91 5.71 5.91 5.98 5.72 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
5.92 5.68 6.14 5.65 5.86 5.42 5.66 5.78
KEY STATS Overall Outperformer : NO Category Outperformer : X6

6.14 Highest score

( Customer support )

5.38 Lowest score ( Customisation features )

0.25

Most improved ( Customer support )

-0.32

Least improved ( Flex and soph SOR )
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