[ A L G O R I T H M I C T R A D I N G S U R V E Y ]
Berenberg
Berenberg achieved an overall average of 6.08 in this year’ s survey, down-0.15 from 2024 and landing 0.18 above the survey average( 5.90). The two largest year-on-year increases were increase trader productivity(+ 0.17) and cost(+ 0.15). The least improved category was dark pool access, which shrank by-0.50. The broker ' s highest scores were in increase trader productivity( 6.42), customer support( 6.40) and ease of use( 6.37). When compared across all providers, Berenberg performs well, beating the category benchmarks across 11 of the 15 areas under review and landing within the top three of the providers profiled across four categories – increase trader productivity, customisation, ease of use and order routing logic analysis.
This year, Berenberg received 29 responses from hedge fund managers and firms using hedge fund strategies- up from 26 in 2024- which ranks the broker ninth amongst its peers in terms of submissions. Of these, 24 % stated they were looking to make use of additional algorithmic trading providers over the next 12 months. In terms of firm size, 45 % manage $ 10 billion or more in AUM, while 34 % of clients indicate they manage between $ 1 and $ 10 billion in assets.
Respondents were based in the UK( 48 %) and Europe( 28 %), with the remainder in North America( 24 %). The most commonly used performance measurement metrics were VWAP TCA, implementation shortfall TCA and liquidity capture. BEAT, Berenberg’ s algorithmic trading offering experienced growth of over 17 % in 2024 with significant expansion plans this year for both the US and European teams. Lastly, Berenberg’ s Trading Intelligence Analytics tool( TIA) is now available in 60 markets globally.
Sample feedback from respondents included the following:
• High marks for TIA tool and customer service
• Demand for more midpoint or touch liquidity offering
• More enhancements in API and additional information and data to support trading requested
BERENBERG RATINGS FOR ALGORITHMIC PERFORMANCE
Increase trader productivity |
Reduce market impact |
Execution consistency |
Cost Speed Anonymity |
Price improvement |
Customisation |
Ease of use |
6.42 5.92 6.17 5.84 5.93 6.02 5.87 6.25 6.37
Order routing logic / analysis |
Customer support |
Execution consulting |
Dark pool access |
Flexibility / sophistication of SOR |
Algo monitoring |
Average score |
5.98 6.40 6.03 5.93 5.89 6.16 6.08
KEY STATS Overall Outperformer: Category Outperformer: X11
6.42 Highest score( Increase trader productivity) |
5.84
Lowest score( Cost)
|
0.17
Most improved( Increase trader productivity)
|
-0.50 Least improved( Dark pool access) |
|
|
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Issue 84 // thetradenews. com // 67 |