Execution, a London-based agency brokerage, has launched a new electronic trading platform, combining the benefits of agency execution with trading tools from leading investment banks.
The new platform, called Alternative Execution, will enable the brokerage’s buy-side clients to trade anonymously in an agency capacity, using the algorithmic suite of four bulge-bracket brokers. The service is currently connected to 15 trading platforms and order management systems.
Clients will also be able to benefit from a single commission charge for the execution tools used on the platform, regardless of which broker algorithm they use, as well as a consolidated ticket for trades executed across multiple venues. In addition, Execution’s clients will be able to use the new service in combination with the firm’s existing portfolio trading product, which is connected to 60 markets globally.
“We wanted our electronic trading platform to incorporate the best algorithms across multiple brokers,” Tony Nash, head of portfolio and electronic trading, Execution, told theTRADEnews.com. “The ability to access this ‘best of breed’ electronic product further empowers the dealing desk and continues the transfer of the execution process away from investment banks and on to customer’s desktops.”
Execution will continue to act in an agency capacity when providing the new service. “Our role will be to advise customers which algorithmic strategies they should use in certain conditions as well as give them completely anonymous access. We will also provide an independent analysis based on historical algorithmic performance across the different providers,” said Nash. “I think the volatile market conditions we are seeing at the moment show how effective the algorithmic providers we have selected are.”
Nash also contended that the increasing cost pressures buy-side firms are facing in the current environment could encourage them to connect to Alternative
Execution. “I think the economic downturn will lead to more electronic execution because of the cost savings that can be achieved by using low-touch trading methods rather than high-touch ones,” he said.