Multi-asset execution and order management systems company FlexTrade Systems has announced the rollout of FlexAlgoWheel, its next generation, data-driven interface to algo selection. FlexAlgoWheel incorporates real-time internal and external inputs as well as TCA to optimize the broker and algo selection process.
According to Vijay Kedia, President and CEO of FlexTrade,
An important, yet repetitive role of any trader is to select the right broker and algorithm based on a multitude of factors, such as order characteristics, portfolio manager instructions, market volatility and relative contribution to risk in the portfolio.
FlexAlgoWheel enables buy-side firms to configure a systematic and quantifiable decision matrix through an intuitive point-and-click interface that dynamically selects the optimal broker and algorithm. Furthermore, it enables full transparency and consistency in the best execution process – a requirement of MiFID II compliance.
“Firm-wide, data-driven, unbiased consistency in the algorithm selection criteria will become the norm,” said Kedia.
FlexAlgoWheel is currently being implemented by multiple buy-side firms that utilize more than 200 brokers, and have a large number of portfolio managers and strategies.
Available through the company’s FlexTRADER multi-asset execution management system (EMS), FlexAlgoWheel covers:
- Access to all brokers and algorithms.
- Portfolio manager instructions and benchmarks.
- A wide range of order characteristics.
- Real-time market conditions and volatility.
- Real-time and historical TCA.
- Internally generated or external signals, such as volume, momentum or alpha predictions.
- Real-time cash management.
- Relative contribution of order to portfolio risk.
- A feedback mechanism via TCA to optimize the broker and algorithm selection process.