Quantitative Services Group LLC (QSG) announced the release of a new trading analytics platform called SYNC, which addresses the new era of high frequency trading. SYNC is said to synchronize one of the industry’s most informative post-trade analytics with a new class of pre-trade forecast models, according to the company.
Through daily access to a new set of innovative execution quality measures, SYNC will accurately evaluate the liquidity management success of brokers, venues and algorithms. This new application addresses the frustration and disappointment with existing TCA tools and their inability to provide actionable insights in an era dominated by high frequency trading, stated QSG, a provider of global equity research and TCA based in Naperville, Ill.
QSG’s SYNC is a service that supports an equity manager’s goal of minimizing trading costs, fine-tuning trading strategies and monitoring “best execution” requirements. It is designed by traders but is leveraged by portfolio managers and compliance officers in a firm-wide implementation. A notable innovation on the new SYNC platform is the priority given to improved “impact cost” forecasts into their stock selection processes. Portfolio managers are increasingly integrating these more accurate forecasts into their stock selection processes. SYNC will fuse these activities together by calculating a daily “error term” for the impact cost forecasts. QSG said this could improve the trading desk’s ability to effectively communicate their cost expectation to portfolio managers, tightening the coordination at an important link in the investment process.
“Our clients have figured out that the implementation shortfall and VWAP metrics of the last two decades won't help them compete in this new era," commented Tim Sargent, QSG's CEO, in the release. "A fragmented market and high-frequency competitors necessitate new measures of execution quality. Our new SYNC offering combines the tools necessary to analyze liquidity management and get the most out of all the tools at a trader's disposal. Our research confirms that some brokers, venues and algorithms are delivering on their promises, but many are not. This new offering makes sure that institutional traders know who's getting it right, while positioning them to be a greater force in the overall investment process."
This release builds upon QSG’s T-Cost Pro trading analytics platform by integrating a new suite of pre-trade tools and a number of advanced post-trade enhancements. —SYNC thoroughly integrates QSG’s new class of “Impact Cost” forecast models for use with individual stocks or lists of stocks.
—QSG’s Strategy Workbench factors in a client’s trading history to deliver pre-trade support for systematic strategy selection and order routing decisions. Historical trading results customize a search for ‘like’ trades and scenarios.
—SYNC’s Correlation Tools address the risk of trading outlier names and lists by identifying subsets of the list that can be paired to neutralize price risks.
—SYNC’s Pre-trade Analysis is supported by QSG’s Trading Risk Index, which alerts traders to significant one-day changes in fundamental, momentum and sentiment-based factors.
—Intraday Analysis and visualization tools track trading metrics across minute-based intervals throughout the trading day.
—Multi-day Order Analysis metrics include measures like “life of Order VWAP’ and ‘Multi-Day Liquidity Charge.”
—QSG’s Performance Tracking and Basket Analysis tools profile historical trading patterns for a portfolio, strategy or algorithm to aid trade timing.
Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in the capital markets. As an industry expert, Ivy has reported on a myriad ... View Full Bio