ASX deploys Quantitative Brokers algos and TCA to derivatives market

ASX is the first exchange in Asia Pacific region to implement Quantitative Brokers’ algorithms.

The Australian Securities Exchange (ASX) has deployed execution algorithms and multi-broker transaction cost analysis (TCA) from Quantitative Brokers to its derivatives market.

Quantitative Brokers said that it will provide its full suite of agency algorithms to clients trading on ASX. The algos are based on quantitative research, and engineered to address market microstructure features of the ASX futures markets to reduce slippage and streamline workflows.

ASX’s Australian Liquidity Centre (ALS) will co-locate and leverage low latency connections for the algorithms, which are accessible through all major order and execution management systems, as well as direct FIX connectivity.

“This gives new clients in the region an opportunity to optimise their execution, while remaining compliant with the Australian Securities & Investments Commission’s guidelines such as RG 97,” said Christian Hauff, co-founder and head of APAC at Quantitative Brokers. “At the same time the new algorithms empower our existing clients from the US and Europe to trade with more edge on the ASX.”

Quantitative Brokers’ TCA has also been deployed across selected ASX futures instruments, offering clients, including superannuation funds, asset managers and hedge funds, access to the broker-neutral tool to measure execution performance of algo, direct market access and voice trades.

The deal with ASX marks the first time Quantitative Brokers’ algorithms have been implemented on an exchange in the Asia-Pacific region after the firm launched an office in Sydney in September last year.

“Following the launch of our Sydney office, Quantitative Brokers continues to make headway in APAC by bringing our algorithms and Multi-Broker TCA to the ASX,” Ralf Roth, CEO of Quantitative Brokers, added. “We look forward to the next step in Quantitative Brokers’ expansion roadmap, as we take our big-data approach to trading and apply our expertise to other APAC markets, such as the Tokyo Stock Exchange and Singapore Exchange.”