Research consultancy TABB Group has launched a new analytics service looking at US equities market trading and routing.
The new transaction cost analysis service, called Clarity, is designed for buy-side firms, enabling them to standardise, aggregate and analyse execution information across all major US brokers.
TABB has partnered with Bloomberg Tradebook, Cowen and Company, Sanford Bernstein and Weeden & Co to develop Clarity.
The consultancy has also set up a new data division, TABB Metrics, which will focus on the development of accurate and consistent analysis of critical execution information and data. TABB said the new division will drive increased transparency, streamlined workflows, enhanced broker-client relations and consistent analysis.
Clarity will enable institutional investors to examine broker venue routing data and put it into context. This analysis can then be used to help investors and their brokers improve their execution quality and understand the costs of execution.
“In today's fragmented US equities market with 54 trading venues, it is difficult for institutional investors to gain a clear understanding of how their orders are executed,” said Larry Tabb, founder and CEO at TABB Group.
He is hopeful Clarity will also enable buy-side firms to get a better view of their costs by developing a deeper understanding of the execution process.
Tabb added, “investors are increasingly requesting execution and routing information from their execution partners but most buy-side firms lack the expertise to know exactly what to ask for, how to analyse the massive stream of information and more importantly, how to interpret the results.”
Clarity will feature its own advisory board, containing senior representatives from investor and broker communities, who will meet regularly to develop a common set of definitions, standards and analytics for the service.