Greater regulatory scrutiny and the pursuit of alpha have given rise to a new generation of decision support tools aimed at helping institutional investors perfect the investment process.
Trading technology provider InfoReach offers a decision-support tool that helps investors pinpoint moment-to-moment market opportunities to capture short-term alpha. As well as pre- and post-trade analytics, ‘Second Opinion’ factors in real-time trade and market variables – volume, volatility and market trends – during the progress of a trader’s intended order execution. Based on market conditions, Second Opinion re-estimates all projections and updates the trader of any changes in pre-trade assessments every 15 minutes.
For example, initial pre-trade analysis might suggest that a certain trade will be 10% of the projected day’s volume. But, Second Opinion At-Trade can flag that the remainder of the trade might be 20% of the projected remaining day’s volume (based on both actual market volume being lower and the progress of execution being slower than expected). According to InfoReach CEO, Allen Zaydlin, these alert capabilities means users can identify opportunities to create risk-less alpha as they arise, thereby improving overall investment performance. “Traders are looking to take greater control of their orders and to explain the performance they achieved,” he says.
