BabelFish & Plato
Based in New York, BabelFish Analytics is an independent, employee-owned, unconflicted provider of transaction cost analysis for the US and European equity marketplace. They help hedge funds and mutual funds to identify, understand, and lower the costs associated with inefficient trading strategies.
The Clarity consulting product line was launched in 2014 and has grown to accept venue and routing data from almost 40 brokers. Clarity will soon begin analysing non-US routing and venues, and a global portfolio/trader level full-service TCA product is currently in early stages of QA.
Plato Partnership recently announced that it will be introducing BabelFish Analytics’ ClarityReveal, a next generation trade cost analysis platform as Plato-Clarity, to the European market. BabelFish will be Plato’s preferred partner for comprehensive broker analytics, offering third party performance evaluation of brokers, algorithms, and venues. Additionally, Babelfish and Plato will offer a product that collects, warehouses, and normalizes the associated (anonymised) data for bespoke analysis.
Additionally, Plato and Babelfish will establish an advisory board comprised of both buy- and sell-side industry members to provide guidance and insight into methodology, product enhancements, and research.
To find out more please contact LearnMore@babelfishanalytics.com
Plato-Clarity: Consulting Platform
Plato-Clarity is the only interactive consulting application that takes into account every action in the life of an order. Because Plato-Clarity incorporates algorithmic data obtained directly from brokers, the platform can delve into unfilled routes, which represents the vast majority of implementation actions and potential impact. It then compiles the data into dashboards which offer actionable answers to questions around execution efficiency.
By using Plato-Clarity, European buy and sell-side market participants will be able to better understand algorithmic trading challenges such as:
· The efficiency of an algorithm’s routing sequences to venues
· If internalisation practices are improving or hindering performance
· If transaction fees and rebates are aligned with best execution metrics
· Helping traders align their execution tools with their order flow
· How to effectively apply minimums to maximize fill rates and minimize toxicity.
ClarityReveal is also available to US market participants, with almost 40 brokers providing both filled and unfilled routes, including all banks, major agency brokers, as well as brokers using all the major algorithmic management systems for both high and low touch desks.
Plato-Clarity: Data Warehouse
One of the biggest challenges to any analysis operation faces is gathering, normalizing, and processing data. For traders attempting to understand and integrate their broker’s routing activity into larger optimization or performance models, this has been a frustrating and fruitless project that almost always results in endless cost, wasted resources, and inaccurate outcomes.
In order to produce the Plato-Clarity application and consulting analysis, Babelfish has established a solid broker network and collects historical data in Babelfish’s standard, comprehensive format, which is already commonly in use.
This data is normalized, priced, and processed into an easily digestible format and delivered using a variety of secure formats to an authorized destination.