S3 targets buy-side with execution quality offering

Technology vendor S3 has launched a new suite targeting the buy-side’s growing need to statistically break down the quality of orders by venue and broker.

Technology vendor S3 has launched a new suite targeting the buy-side’s growing need to statistically break down the quality of orders by venue and broker.

The firm’s Buy-Side Execution Quality Suite, launched this week, gives asset mangers and their brokers the ability to measure how orders are handled, including benchmark and volume comparisons for equities and options trades.

Mark Davies, CEO of S3, said the new offering was part of efforts to expand the firm’s client base to include the buy-side by meeting the growing desire for asset managers to measure order performance to decide where and with which brokers to execute orders.

“This helps buy-side firms understand the decisions they make. We can display all information from the initial trade request all the way to execution on an exchange to determine which venues to route orders to for the best outcome,” Davies told theTRADEnews.com.

He added that the product would help the buy-side improve the quality of block trades by showing which venues and brokers offered the best price improvement for the full lifecycle of an order.

“The information they glean from this product should give [a buy-side firm] the ability to improve the performance of their large trades,” he said. “We provide them the information showing the best venue to route to.”

The service relies on data provided by brokers to their buy-side clients, and Davies said the buy-side execution quality offering would be part of the firm’s core best execution tools.

This core product, used mainly by large banks’ brokerage divisions, breaks down matching information to help show buy-side clients the quality of their executions.

Davies said the offering targeted buy-side firms, many of which currently access S3’s core product through their brokers.

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