Babelfish Launches Routing and Venue Tool


Babelfish Analytics, an unconflicted, independent provider of venue routing and analytics, has launched ClarityReveal, a new automated consulting application that addresses the growing demand for its multi-broker Clarity venue and routing advisory service.

Used as a stand-alone robo-advisory performance evaluation tool or in conjunction with its Clarity full-service consulting services, ClarityReveal analyzes the entire execution process. Most venue analysis products only look at fills, which can be as little as 1% of the total available data, while Clarity and ClarityReveal evaluate both the unfilled and filled routes. The result is a comprehensive look at strategy efficiency—and the only way to truly understand how to connect algorithm action to overall performance. Both Clarity consulting and ClarityReveal utilize the proven Babelfish methodology to help keep assets in their clients’ investment vehicles that would otherwise be lost through trade execution.

What makes ClarityReveal unlike typical transaction cost analysis tools is that it distills the consulting experience into highly effective dashboards that tell a story about the data. Instead of presenting tables and charts of reorganized and rehashed data, ClarityReveal presents actionable answers, similar to the guidance that a trader would gain by sitting with our highly experienced strategy consultants. By using ClarityReveal, traders can understand issues like:

• The efficiency and associated costs with what sequence an algorithm uses to route to venues;
• Whether or not a broker’s internalization practices are adding to or detracting from performance;
• If transaction fees and rebates are commensurate with best execution metrics; and
• How to effectively apply minimums to maximize fill rates and minimize toxicity.

Additionally, ClarityReveal provides broker-specific reporting that enables traders to share analysis to their execution partners and form the basis for productive and quantitatively informed discussions about customizations to algo technology. This platform is the first of its kind to provide a roadmap for algo enhancements, with an incorporated framework for iterative experimentation, monitoring, and ongoing analysis.

Linda Giordano, Co-Founder and CEO of Babelfish Analytics said, “We created the venue and routing analysis space because we fulfilled a critical need for transparency into the routing process. ClarityReveal is the next step as it democratizes the process and enables more firms to access this vital information that not only helps a trader add value and makes the trading process more efficient, but puts money back in their clients’ pockets in the form of improved alpha. Every trader should be looking at this “last mile” form of TCA and both Clarity and ClarityReveal offer the ability for everyone to understand how to work with their brokers to better tailor their algorithms to their specific order flow.”

The expertise and framework that underpins the platform is the culmination of decades of leadership in the TCA industry. The founders of Babelfish created venue and routing analysis and helped the industry prepare and cleanse their data. It is not only critical to insure that the analysis produced is accurate and reliable, but that contributed data remains secure and used only for its designated purpose.

“The infrastructure used to create the Babelfish data repository was created with security and the needs of our buy side clients and data contributors in mind,” said Jeff Alexander, Co-Founder and President of Babelfish Analytics. “We are the only independent, unconflicted provider of execution consulting services and transaction warehousing. Our data is secured and is only available to our clients—and will never be made available to exchanges, venues, conflicted parties, or between brokers. Our only mission remains to help our clients increase their investment returns. It is important that any firm that maintains responsibility over this very sensitive data is not self-interested in its contents.”

Based in New York, Babelfish Analytics is an independent, employee-owned, unconflicted provider of transaction cost analysis for the US equity marketplace. We help hedge funds and mutual funds to identify, understand, and lower the costs associated with inefficient trading strategies. The Clarity consulting product was launched in 2014 and has grown to accept venue and routing data from over 25 brokers. Clarity will begin analyzing non-US routing and venues in the near future, and a global portfolio/trader level full-service TCA product is currently in early stages of QA.

More information can be found at: https://www.babelfishanalytics.com/reveal-application/

Related articles

  1. FXCM's leader looks back on FX market evolution and the changes ahead.

  2. Buy-Side Economics Keeps Broker Commissions Flat

    Buy-side says algo offerings determine order flow destination.

  3. Going Beyond the Buzz of Fintech

    Exec discusses the fintech behind algos and 'best ex'.

  4. IBM dips its toe into algorithmic trading.

  5. Margin Calls Expected to Increase

    Clients can lower funding requirement via initial margin optimization.