Buy-side traders will have greater visibility of automated trading decisions with a web-based tool launched by execution and research broker ITG that displays real-time metrics including the venues algorithmic orders access.
ITG Algorithms Prism has been designed to meet an increased appetite from buy-side firms to know exactly which venues algos accessed and more detailed information than just fill rates, which many use currently to judge algo performance.
Jeff Bacidore, head of algorithmic trading at ITG, said the tool was developed to see how orders fared in each venue and this information would be used to craft both trading decisions and the ITG algos.
“Buy-side firms want a greater understanding of how algos work and more transparency, and we expect this tool to change how asset managers use algos,” he told theTRADEnews.com.
The Algo Prism tool will provide real-time visibility into the activity of each ITG algorithm, such as the predicted and realised schedules, fill details, location, type and price of every open child order.
Bacidore added that clients can ask questions related to algo performance viewed through the tool and make changes to trading strategies based on the answers.
“This is good for algorithmic orders worked over time and sophisticated orders where clients will benefit from more than only looking at fills. Clients can see in real-time which markets the algo accessed and have more visibility of each trade,” he said.