Liquidnet Offers High-Touch Solution for Best Execution Analysis

Blog entry

Liquidnet has introduced Best Ex Replay, an addition to its Virtual High Touch suite that is powered by data and analytics from OTAS Technologies. The solution allows traders to recall precise market conditions to explain the context of execution decisions, investigate orders that experienced exceptional market conditions, and achieve regulatory reporting compliance.

Natasha Shamis, global head of product at Liquidnet, explains: “What we’ve heard from our global membership is that every minute that goes into manual, administrative tasks such as compliance requests and best execution analysis, while valuable, is time that comes at the expense of alpha generation. Traders need to spend their time on achieving best execution, not proving it. That’s what Best Ex Replay is for.”

Best Ex Replay allows traders to research the trading conditions of a security on a specific date and presents the user with a description of exceptional trading conditions during that day, market microstructure charts and analysis covering return, volume, liquidity and spread. Traders also have an option to run a performance report on an execution based on order details they provide, which is particularly useful to meet Markets in Financial Instruments Directive II (MiFID II) best execution requirements.

Mark Pumfrey, head of Liquidnet EMEA, comments: “The recent introduction of MiFID II in Europe has accelerated global regulatory pressure on firms to deliver constant, detailed and systematic best execution analysis. Best Ex Replay delivers meaningful execution and market information in a convenient and timely way. It is a a broker-neutral solution covering most equity names in the US, Canada, developed Europe, Hong Kong and Australia, whether or not an order is executed on Liquidnet.”