WHAT WE OFFER

Trade Data Analysis

TradingHub provides trade data analytics to the financial services industry. Among our clients are global banks, leading asset managers, hedge funds and major regulatory institutions. Throughout our product suite we employ market-leading analytic techniques. Employing these sophisticated methodologies, our tools produce accurate and actionable results, allowing our clients to:

  1. Identify actions that may constitute market abuse.
  2. Identify potential rogue traders.
  3. Analyse best execution.
  4. Objectively assess and improve the performance of traders.

Our Market Abuse Surveillance Tool (MAST) locates suspected instances of market abuse. Our Rogue Trader Metrics System (RTMS) identifies potential rogue traders. Our Transaction Efficiency and Accuracy Monitor (TEAM) measures and analyses best execution. Our Profiling tool provides behavioural and performance profiles of traders and portfolio managers.

Our tools operate across all asset classes and product types. They each scale up to global enterprise levels of trade data. Combining that level of flexibility with the sophistication of their analysis, our tools have earned a place at the leading edge of the market.

 

Panel 1

MARKET ABUSE

We offer a powerful system for detecting suspected instances of market abuse – our Market Abuse Surveillance Tool (MAST).

MAST employs a unique combination of statistical analysis and behavioural metrics. It is this methodology which allows MAST to so reliably highlight true positives, reduce false positives and altogether provide a comprehensive solution for the monitoring of market abuse.

Proven Resource

We have designed MAST to assist customers in meeting their regulatory and supervisory requirements and obligations.

To date, MAST has successfully identified hundreds of cases of market abuse and insider dealing. Asset management firms use MAST on a daily basis to monitor funds covering a total AUM of over eight trillion dollars. Banks and active trading organisations also use the tool daily to check for regulatory breaches in hundreds of millions of orders and trades.

At the core of MAST’s success is its ability to accurately highlight trader outperformance. In the course of its analysis, MAST dynamically estimates the average behaviour of a fair trader in the given context. It is then able to highlight behaviours that are far beyond the market’s expected average, effectively cutting out false positives in the process.

Data

MAST ingests a variety of trade reports ranging from daily aggregated trade data to fill-by-fill intra-day reports. MAST identifies suspicious transactions even when the data does not include offsetting non-reported legs.

Panel 2

ROGUE TRADERS

Our Rogue Trader Metrics System (RTMS) enables our clients to identify, investigate and report unauthorised trading activity.

RTMS employs a series of behavioural metrics to identify traders who are obscuring risk or P&L, as well as those who are otherwise engaging in unauthorised trading activity. Given the scale of losses that rogue traders can occur, RTMS has the potential to save clients extraordinary sums.

Confidence Level

RTMS indicates potential incidences of unauthorised trading through a red flag system. In each instance where it flags suspected unauthorised trading, it asserts a level of confidence derived from a proprietary scoring method. This methodology not only serves to reduce false positives, but also allows clients to clearly prioritise threats for further investigation.

Case Management

RTMS includes an integrated and fully featured case management system. It permits the user to easily investigate potential breaches, document follow up actions and generate audit reports.

Panel 3

BEST EXECUTION

Our Transaction Efficiency and Accuracy Monitor (TEAM) offers analysis of best execution and off market trades.

TEAM allows users to compare trades across brokers and venues to assess which deliver best execution. To do so, it employs sophisticated quantitative techniques that are unlike anything else on the market.

Advanced Approach

With machine learning algorithms at its core, TEAM creates a probability distribution for the mid-price of any asset at any time in the past. The tool then compares the client’s executed trades to this distribution, permitting the user to measure the performance of their broker against the market – even for relatively illiquid assets. Despite the sophistication of this analysis, TEAM’s clear interface ensures that understanding the results is simple and efficient.

Buy-side and Sell-side

TEAM has benefits for both the buy-side and sell-side. While buy-side users may use the tool to assess the performance of their brokers, so too can users on the sell-side compare themselves against their peers. The tool is flexible, scalable and brings value to all firms throughout the market.

Panel 4

TRADER & PM PROFILING

In our Profiling tool, we employ our proprietary metrics and analytic techniques to build a quantitative assessment of trader performance.

Feedback Based Performance Improvement

Trading is a skill-based activity acquired through thousands of hours of purposeful practice. However, practice without feedback results in only incremental improvement. In providing a comprehensive assessment of a trader’s performance, our Profiling tool provides a clear means of developing and improving each trader’s profitability. Its insights provide far more value than simple measurements of a trader’s P&L.

Metrics based approach

The Profiling tool employs a series of behavioural metrics whose outputs provide a detailed assessment of a trader’s overall approach, performance and trading style. They allow the client to identify a trader’s strengths and weaknesses, including any limiting behaviours. The tool also models likely performance outcomes if the trader were to change their current approach and trading style.

The tool reduces these outputs into per trader Performance Analysis presentations. They provide the analysis and detail necessary for supervisors and desk heads to develop and understand their traders and to optimise their performance.


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