The TRADE 79 - Q1 2024 | Page 90

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UBS

This year , UBS has come in just under the average , with an overall score of 5.72 . Covering all the core algorithms with a focus on equities , ETFs , fixed income , foreign exchange and listed derivatives . UBS received 89 responses this year , with over half of respondents from Europe ( 51 %) and 45 % of clients reporting to holding AUM of $ 50bn or more .

Ease of use takes the top spot , with a score of 5.91 , followed by increase trader productivity ( 5.90 ). In third place is cost , which beats the average score with 5.84 , increasing by nine decimal places from 2023 .
The other two categories which beat the average are reduced market impact ( 5.82 ) and customisation features ( 5.69 ). Interestingly , one
respondent commented that UBS could introduce more custom-built strategies , so while there has been clear progress made , respondents are looking for more .
When it comes to customer support , the score is middle of the road , however this category has seen the biggest increase over the last 12 months . Increasing by 0.37 , customer services sit at 5.78 , the top end of “ good ”.
To the other extreme , routing logic analysis has seen a decline since last year , dropping 0.14 to 5.41 , also making this the lowest scoring category .
Around 12 % of traders are considering using additional algorithms providers in the next 12 months , although there is no clear winner about who they will be looking to use .
UBS RATINGS FOR ALGORITHMIC PERFORMANCE
Increased trader productivity
Reduced market impact
Execution consistency
Cost Speed Anonymity Price improvement Customisation
5.90 5.82 5.83 5.84 5.82 5.75 5.64 5.69
Ease of use
Order routing logic / analysis
Customer support
Execution consulting
Dark pool access
Flexibility and sophistication of SOR
Algo monitoring
Average score
5.91 5.41 5.78 5.45 5.83 5.64 5.52 5.72
KEY STATS Overall Outperformer : NO Category Outperformer : X3

5.91 Highest score

( Ease of use )

5.41

Lowest score ( Routing logic analysis )

0.37

Most improved ( Customer Support )

-0.14

Least improved ( Routing logic analysis )
90 // TheTRADE // Q1 2024