Second Opinion is an interactive, real-time TCA system that generates actionable analysis to improve execution quality and reduce transaction costs. It provides pre-trade, attrade and post-trade analytics that address the specific circumstances of each situation.
Second Opinion factors variables that can affect trade outcomes, including daily volume, volatility, market trends and other factors. Its interactive analysis helps traders choose the best strategy at any point in time and adjust execution strategies in real time.
Second Opinion also monitors real-time markets as well as the progress of each trader's intended execution and informs the trader of any changes in pre-trade assessments. This allows traders to adjust the course of trade execution based on market performance.
Tightly integrated with the InfoReach Trade Management System (TMS), Second Opinion spares traders time when using pretrade analyses to set up execution strategies for large portfolios. This can be a substantial advantage when dealing with large portfolios.
Asset classes and markets
Second Opinion covers global equities. Transaction data Second Opinion uses target positions and individual fills from transaction data.
Second Opinion uses target
positions and individual fills
from transaction data.
Projected liquidity, slippages against VWAP, arrival price, participation rate and user defined benchmarks are all offered.
Data is delivered in the form of interactive tables and charts and can be accessed via APIs. Based on market conditions, TCA re-estimates all projections and provides updates every 15 minutes.
InfoReach can make enhancements to TCA based on customer requirements.
Proprietary pre-trade analytics help traders determine optimal trading horizon as a function of cost impact and price change over time. Based on the statistical analysis of months of historical trades and quotes and using the Almgren and Chriss model as its core, Second Opinion goes one step beyond to factor in realtime trade and market variables. Back testing reveals this can improve the accuracy of pre-trade analysis alone by as much as 12%.
While Second Opinion is currently available through the InfoReach TMS, the firm intends to offer it as an independent service via APIs for use in other trading systems. Traders will be able to see and compare trade assessments from multiple sources on one screen and even view all the analytics directly from their blotter.