Equities BI Use Case

A similar business story holds for Equities. Here it’s not as much an issue of pricing but quickly recognizing order-processing problems and increasing order-share volume.

With newer trading venues, Buy-side banks can get their orders filled quicker than ever before; large orders are now sliced, diced and submitted as smaller orders for execution. This execution method has established better average-pricing returns for Buy-side customers (depending on the Algorithm used and its performance against the market).

At the same time, Sell-side banks have provided their top customers with lightweight trading platforms to place and monitor their orders and executions. This gives the Buy-side customer the ability to choose their own execution strategy without broker assistance, yielding additional commission savings to the Buy-side client. Buy-side banks now have clear visibility into the Sell-side’s execution operations along with the performance and availability of their underlying IT systems. As a consequence the Buy-side often knows about a problem before the Sell-side does.

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Track Important Equity Metrics

To help you overcome these challenges, InetSoft provides views into some important Equity metrics:

● Measurements of latency across the different hops of the order process flow

● Buy/Sell/Sell Short ratio

● Throughput performance in any given hop

● Top client activity volume

● Top traded symbols

● Open orders waiting to be processed

● Customer visibility into which algorithms are most heavily used

InetSoft allows you to combine these key performance indicators and have the ability to monitor all of these conditions proactively. With InetSoft, you can ultimately increase share-processing volumes and decrease the number of cancelled trades.

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View live interactive examples in InetSoft's dashboard and visualization gallery.

Realize Returns from Operational Analysis

Even with a fractional improvement in a typical trading day’s performance, InetSoft can provide a significant return:

● 150MM shares of daily order opportunity

● 40% of orders not filled

● 90MM daily executed order volume

● 0.025 cents revenue for each share filled

● InetSoft Solution provides a conservative 1% improvement

● 5% increase in performance month to month

Using a conservative approach for this example, InetSoft returns nearly $4,800,000 ((150MM * 0.40 * $0.025) * 0.01) in one year’s time.

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