Data Visualization Tools Help Traders Achieve Best Execution in Today’s Ultra-Fast Moving Markets
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Overview: Security traders today face two major challenges: the markets in which they operate have become highly complex and ultra-fast, while at the same time the fiduciary duty of best execution is viewed more seriously than ever. Wayne Wagner explains how data visualization applications help traders achieve best execution by informing them of developing situations quickly enough to prevent sub-standard executions. Advanced data visualization software platforms have emerged in recent years as solutions to the “needle in the haystack” problem. Information Visualization companies have strived to eliminate most implementation headaches, as well as to enhance the speed and user-friendliness of the offerings. They have also begun to focus on enterprise or embedded solutions rather than stand-alone desktop products, resulting in applications that address interconnected business problems. These enterprise solutions are easily deployed and administered within an organization. Most importantly, they allow business users to monitor, analyze and act on their essential business data. Given the power and broad applicability of visualization software, including Treemaps (Heat Maps), we are likely to find it as common as spreadsheets in the near future. Treemap (Heatmap) visualizations has proven its potential to enhance control of complex, rapidly changing business problems. The author of this paper, Wayne Wagner, is one of the barons of transaction cost analysis in the equities market. He has spent more than 40 years figuring out how portfolio managers can implement their ideas most efficiently.