Instinet has launched the latest version of its Newport execution management system (EMS).
Newport 3, the third-generation platform, offers performance enhancements as well as new TCA analytics integration and complete broker-neutrality.
First and foremost on the improvements from is performance and throughput, says Jon Zanoff, global head of EMS strategy at Instinet.
“With exponential market data growth and trade growth Newport can now handle hundreds of thousands of executions per day, aside from the market data traffic - that’s tens of thousands of orders – with room to grow,” he says.
The latest version of Newport is also entirely broker neutral, enabling clients to access algorithms and trading desks from major global broker-dealers.
“In no way do we bias our own brokerage when trading in Newport 3,” says Zanoff. “If a broker launches a new algorithm and a customer requests access, no matter where it is, we’re going to allow a broker to provide those parameters within Newport 3.”
Zanoff adds, “I consider an EMS to be an algorithmic tool kit designed to help institutions develop their own trading strategies using Instinet algorithms, direct market access and access to any other broker they want to transact with. One algorithm can’t solve every trading scenario or market condition.”
In response to changing market conditions and client request, Newport 3 also has integrated pre-trade, real time and post-trade transaction costs analysis within the trading platform.
“TCA is necessary in a real-time context more and more and needs to be integrated within the EMS,” says Zanoff. “Traders need the ability to very quickly understand the market impact and risk profile of a particular single stock or basket and get real-time, actionable feedback as they’re trading. They can’t wait for the end of the day, let alone the end of the quarter for a TCA report.”
Zanoff explains that the full suite of TCA analytics is available within the EMS. From the time an order is entered or received by the EMS blotter, a trader can view a numeric and graphic representation of the expected market impact based on their own risk tolerance, he notes.
“As they are trading they can see where they are sourcing liquidity, if the market is moving with or against them and how they are performing relative to a vast number of benchmarks,” says Zanoff. “Then post-trade traders can see if their assumptions were correct and if they implemented their trading strategies as they desired.”