FlexTrade Systems, a provider of order and execution management systems, has teamed up with NYSE Technologies, the commercial technology unit of NYSE Euronext, to offer clients new analytics capabilities.
NYSE Technologies’ exchange market data clients will be afforded direct access to FlexEdge, FlexTrade’s predictive analytics platform that provides forecasting capabilities for trading US equities.
FlexEdge supplies intraday volume forecasts for use by buy- and sell-side institutions that aim to improve traditional volume estimates by helping clients manage slippage costs, improve order sizes and reduce VWAP tracking error. FlexEdge features available via NYSE Technologies include forecasts for 3,000 US stocks and exchange-traded funds every minute, and the ability to use forecasts in algorithms, blotters or as part of graphic visualisations.
“Predictive analytics is a relatively new forecasting tool for the electronic trading space,” said Vijay Kedia, president and CEO of FlexTrade. “With this partnership, clients of NYSE Technologies can now gain access to intra-day volume forecasts for 3,000 equities and ETFs, thus giving them a possible edge in managing their trading executions.”
FlexTrade claims its FlexEdge tool cuts volume forecast error by 20-25% compared to the historical average across the top 3,000 equities and provides volume profile forecasts that improve VWAP tracking error 7-10% vs. historical curves.
“FlexTrade joins us at the forefront of innovation by supporting the new industry standard OpenMAMA and placing our products on an open, multi-vendor market data platform,” said W. Todd Watkins, global market data, NYSE Technologies. “Through this collaboration, we are able to provide customers with a market data solution that helps them formulate more effective trading techniques.”