Vhayu Technologies, a provider of enterprise tick data solutions, has partnered with EZX, a provider of electronic trading software and FIX technology services, to integrate the necessary components for firms to conduct real-time transaction cost analysis. Velocity TCA provides multiple out-of-the-box benchmarks to measure and analyze trading performance with instantaneous feedback on trades sent from any FIX-compliant EMS or OMS.
"Today, it really doesn't matter if you're a trillion-dollar, quantitative mega-manager or a classic, bottoms-up stock picker with $1 billion in assets. Both scrutinize their post-trade TCA on a daily basis," commented Larry Tabb, Founder & CEO at TABB Group. With tighter regulations, more scrutiny and increased algorithmic trading, TCA has become an integral component of the trade process. The sell-side is moving to offering real-time TCA to bolster their algorithms while the buy-side is looking at TCA from a broker-neutral standpoint, which requires measuring all trades in a central repository with control over which benchmark analysis to use in different cases.
Velocity TCA connects technology components such as:
Market Data Management: Velocity captures any real-time data feed, provides normalization and mapping, and can analyze hundreds of gigabytes of Level 1 and Level 2 data, publish out thousands of simultaneous analytics and store the data for subsequent research.
Pre-Trade Analysis: Velocity offers over 80 out-of-the-box analytics that can be easily customized to reduce time to market.
Execution Strategy: Velocity iServer is an integrated FIX component that is FIX certified by over 80 major brokers and liquidity centers, and can receive drop copies from any EMS or OMS.
Order State Management: Velocity iServer reduces complexity of internal FIX development by providing a simple business-based API, FIX version normalization (4.0 - 5.0) and state management, and can mirror any trade execution system within Velocity.
Trade Cost Analysis: Velocity combines market data, proprietary data and order/execution data to deliver real-time, intraday or end-of-day analytics. Firms use provided analytics, or develop custom benchmarks via Velocity server-side DLLs, and the Velocity API to interact with their desired front end. Velocity provides exchange data loaders for daily market close data in order to run end-of-day reporting.
"A sizable hurdle for full-fledged TCA is the massive amount of data required for effective analysis. As a result, most firms have previously given it up to services because the market and execution data requirements made it hard to do internally," said Jeff Hudson, CEO at Vhayu. "These firms often have a high degree of dependence on their broker-provided TCA tools, so we are pleased to partner with EZX and offer them the alternative of an internal end-to-end TCA solution."
"With traders using DMA or in-house algos needing to deploy broker-neutral TCA, we shared Vhayu's vision of the real-time TCA market opportunity," added Paul Savin, CEO at EZX. "With 40 customers already using iServer, it is proven technology for the management of orders and executions and complements Vhayu's data store functionality. Additionally, iServer offers firms the flexibility of a black box trading system, allowing them to be self-sufficient for both execution and measurement from a single solution should they choose."