Trading Technologies Adds TCA, Surveillance, Products
Posted by Colin Lambert. Last updated: June 19, 2024
Trading Technologies International has launched two new products, TT Futures TCA and TT Trade Surveillance, to boost its data & analytics and compliance business lines
After acquiring TCA provider Abel Noser in August 2023, TT is rolling out its futures TCA product, which it says leverages the largest collection of anonymised, millisecond-level futures market and trade data with an array of metrics and measures. Users are able to choose from customisable reports to analyse and improve their trading strategies while measuring the efficacy of their trading counterparties.
TT says the capability is available now and will be integrated in early 2025 into its platform as a widget on the front end, with the customised analytics available to the client based on the metrics, breadth and level of granularity desired. It adds clients will have an option of three levels of service dependent upon their analytical needs.
“Historically, investment managers and traders have not been able to rely on a TCA tool tailored for futures,” says Peter Weiler, managing director, data & analytics at TT. “By leveraging the massive amount of real-world futures trading data – anonymised – that only a firm like TT can bring to the table, we’re able to combine it with Abel Noser’s extensive TCA data and custom reporting that has been an essential tool in other asset classes, and produce what is without question the most comprehensive TCA solution for futures.
“We’ll be providing anonymised peer benchmarks for detailed, post-trade analyses down to the millisecond,” he continues. “Users can look at like trades under historically similar circumstances to make apples-to-apples comparisons, understand their success relative to their peers, ensure they are achieving best execution and more.”
TT Trade Surveillance is powered by the firm’s proprietary Score machine learning algorithm, and the firm says it combines new multi-asset coverage and dozens of new configurable models with the machine learning-driven models from TT Score, the company’s first-generation trade surveillance platform. The firm says it plans to upgrade and shift all TT Score users to TT Trade Surveillance in the second half of this year.
As part of the roll out, TT is expanding its trade surveillance capabilities beyond listed derivatives to equities and equity-adjacent subclasses such as preferred, warrants and SPACs; equity options; FX; and fixed income. The new tool adds 47 new user-configurable surveillance models to its existing suite of models driven by machine learning technology. The new models are designed to detect a wide range of manipulative or disruptive trading activities, including insider trading, front-running and naked short-selling practices.
“We’re building on our track record of innovation and investment in the product by extending our capabilities into new asset classes – consistent with our company-wide expansion – and more than doubling our surveillance models, putting more power into the users’ hands,” says Ted Morgan, managing director, compliance, at TT. “They can adjust settings and thresholds that pertain to any particular model and run them on any subset of data they want to filter, such as defining parameters differently for specific countries or distinguishing between retail and institutional flow.”
The firm says users of the new service will still be able to access the online suite of analysis tools and out-of-the-box features available to compliance officers investigating alerts, such as the market replay tool, reconciliation module and other graphical aids. Users can also create and configure a synthetic instrument to identify potential manipulation across products and markets.
“We are constantly in a mode of identifying opportunities that will enhance our clients’ experience, simplify their day-to-day operations, increase efficiencies and add value to the trade life cycle,” says Justin Llewellyn-Jones, COO of TT. “The introduction of our new futures TCA and expanded multi-asset trade surveillance capabilities are the latest examples of how Trading Technologies and the TT platform play a pivotal role in the global financial markets.”