A survey of algorithmic usage in Asia was carried out by the TRADE Asia during the summer and the top three firms in each category were announced last week.
The top three in each category now play-off to determine which one firm will win the trophy. That prize will be awarded at an event being held at the Conrad Hotel in Hong Kong on 13 November.
The tally of roll of honour appearances per firm is listed below. Leading the nominations, with five apiece are Citi and Morgan Stanley, which therefore pre-figures the possibility of Citi’s Ben Valentine or Morgan Stanley’s Zach Tuckwell each scooping a quintet of trophies.
| Citi | 5 | ||
| Morgan Stanley | 5 | ||
| UBS | 4 | ||
| Bloomberg Tradebook | 3 | ||
| J.P. Morgan | 3 | ||
| Liquidnet | 3 | ||
| Bank of America Merrill Lynch | 2 | ||
| Barclays | 2 | ||
| Credit Suisse | 2 | ||
| Goldman Sachs | 2 | ||
| Instinet | 2 | ||
| ITG | 2 | ||
| Sanford Bernstein | 2 | ||
| BNP Paribas | 1 | ||
| CLSA | 1 | ||
| Deutsche Bank | 1 | ||
| Fidelity | 1 | ||
| Macquarie | 1 | ||
And to remind you, the roll of honour again is as follows:-
REDUCING MARKET IMPACT
ITG
J.P. Morgan
Liquidnet
EXECUTION CONSISTENCY
Bank of America Merrill Lynch
Citi
Credit Suisse
PRICE IMPROVEMENT
Citi
J.P. Morgan
Liquidnet
ANONYMITY
Bloomberg Tradebook
Instinet
Morgan Stanley
EASE OF USE
Deutsche Bank
Goldman Sachs
Instinet
TRADER PRODUCTIVITY
Goldman Sachs
J.P. Morgan
Morgan Stanley
CUSTOMER SUPPORT
BNP Paribas
Citi
Macquarie
CUSTOMISATION
Credit Suisse
Morgan Stanley
UBS
COSTS AND COMMISSIONS
Bloomberg Tradebook
Morgan Stanley
UBS
CROSSING
Citi
Liquidnet
UBS
SPEED AND LATENCY
Bank of America Merrill Lynch
Bloomberg Tradebook
Morgan Stanley
EXECUTION CONSULTING AND ANALYTICS
Citi
ITG
UBS
ONES TO WATCH
Following the example of the awards presented by The Trade magazine each year, ‘ones to watch’ are classified in two categories. Firstly those firms that appear, based on response numbers, to be winning clients. Secondly, those that, based on scores achieved, appear to be highly regarded by their clients.
RESPONSE NUMBERS
Barclays
CLSA
Sanford Bernstein
CLIENT SCORES
Barclays
Fidelity
Sanford Bernstein
The methodology
Survey respondents were asked to provide a rating for each algorithm provider on a numerical scale from 1.0 (very weak) to 7.0 (excellent), covering 12 functional criteria.
Each evaluation was weighted according to three characteristics of each respondent; the value of assets under management; the proportion of business done using algorithms; and the number of different providers being used. In this way the evaluations of the largest and broadest users of algorithms were weighted at up to three times the weight of the smallest and least experienced respondent.
In arriving at the overall roll of honour, the scores received in respect of each of the 12 functional capabilities were further weighted according to the importance attached to them by respondents to the survey. The aim is to ensure that in assessing service provision the greatest impact results from the scores received from the most sophisticated users in the areas they regard as most important.