Liquidnet adds best ex analytics to Virtual High Touch suite

Liquidnet ‘Best Ex Replay’ tool allows traders to replay market conditions at time of execution to help meet MiFID II best execution requirements.

Liquidnet has launched a best execution analytics tool to its Virtual High Touch (VHT) suite allowing traders to recall market conditions at the time of execution.

Best Ex Replay is the latest update to the VHT suite and has been designed to allow firms to meet new best execution requirements under MiFID II. The tool provides the opportunity to repeat precise market conditions to explain the context of execution decisions and investigate orders that experienced unusual market conditions.

“What we’ve heard from our global membership is that every minute that goes into manual, administrative tasks such as compliance requests and best execution analysis – while valuable – is time that comes at the expense of alpha generation,” said Natasha Shamis, global head of product at Liquidnet.

“Traders need to spend their time on achieving best execution, not proving it. That’s what Best Ex Replay is for,” she added.

The tool also provides a detailed description of trading conditions on a specific date with market microstructure charts and analysis covering return, volume, liquidity and spread. Users can run a performance report on an execution basis on order details for further MiFID II best execution data.

“The recent introduction of MiFID II in Europe has accelerated global regulatory pressure on firms to deliver constant, detailed, and systematic best execution analysis,” said Mark Pumfrey, head of Liquidnet EMEA.

“Best Ex Replay delivers meaningful execution and market information in a convenient and timely way – a broker-neutral solution covering most equity names in the US, Canada, developed Europe, Hong Kong, and Australia, whether or not an order is executed on Liquidnet.”

The analytics are powered by OTAS Technologies, which Liquidnet acquired in May 2017. Liquidnet said at the time OTAS Technologies’ analytics tools would be integrated with its VHT platform.