NEW YORK--(BUSINESS WIRE)--Liquidnet, the global institutional trading network, and Abel Noser Solutions today announced the pilot of Portfolio Manager Profiling. The model, when incorporated into Liquidnet’s Virtual High Touch® Next Gen algo suite, links historical trade and TCA data with the portfolio manager’s decisions to create a distinct profile for each participating portfolio manager. These profiles are then factored into determining a suggested algo trading strategy via Liquidnet’s Algo Ranking Model (ARM).
“A portfolio manager’s tendencies have always influenced a trader’s execution strategy but being able to consistently replicate a profile pattern used to be a challenge,” said Peter Weiler, President of Abel Noser Solutions. “But by analyzing a client’s TCA data, we can now discover any persistent patterns that are statistically significant. With Portfolio Manager Profiling, Liquidnet pulls that analysis into its Algo Ranking Model to rank suggested execution strategies that are aligned to that PM’s preferences.”
“Buy-side traders are increasingly turning to smart execution tools like Liquidnet’s Algo Ranking Model to help support their trading decisions,” said Rob Laible, Liquidnet’s Global Head of Equity Strategy. “A PM’s tendencies are often nuanced, but could have a significant impact on the execution approach a trader takes. Being able to use technology to more accurately pinpoint those tendencies is a powerful addition to a trader’s toolkit.”
Portfolio Manager Profiling is currently being piloted via Liquidnet Labs, Liquidnet’s virtual innovation hub that showcases the company’s latest products and technology. Buy-side firms who are interested in being part of the pilot should contact their Abel Noser or Liquidnet representative directly.
Launched in 2016, Liquidnet’s Algo Ranking Model (ARM) generates an extensive profile of an order before ranking Liquidnet’s Next Gen Algos according to the trader’s execution objectives. Once the trader has made a selection, the model quantifies the factors that drive the ranking and adjusts its calculations in real time according to changing market and stock conditions. If the top-ranking algo changes, the trader is notified automatically. ARM is currently available in both the U.S. and European markets.
Liquidnet is the global institutional trading network where more than 900 of the world’s top asset managers and other like-minded investors come to execute their large trades with maximum anonymity and minimum market impact. Liquidnet approaches every market with the same bold vision to provide a better, more efficient way to trade on a massive scale. It is this focus on size, combined with the strength of its network, disruptive technology, and commitment to transparency, that is revolutionizing the way equities and corporate bonds are traded. For more information, visit www.liquidnet.com and follow us on Twitter @Liquidnet.
ABOUT ABEL NOSER SOLUTIONS
Abel Noser Solutions has long been respected as a leader in the campaign to lower the costs associated with trading. With over 500 clients worldwide, Abel Noser Solutions offers software products along with consultative and bespoke services in the areas of trade analytics, compliance, and trade surveillance. The firm continues to hold its place as the leading innovator in TCA, compliance software, and service solutions. Abel Noser Solutions has offices in New York and London. Learn more at www.abelnoser.com.
© 2018 Liquidnet Holdings, Inc. and its subsidiaries. Liquidnet, Inc. is a member of FINRA/SIPC. Liquidnet Europe Limited is authorized and regulated by the Financial Conduct Authority in the UK, is licensed by the Financial Services Board in South Africa, and is a member of the London Stock Exchange and a remote member of the Warsaw Stock Exchange and SIX Swiss Exchange. Liquidnet Canada Inc. is a member of Investment Industry Regulatory Organization of Canada (IIROC) and a member of the Canadian Investor Protection Fund. Liquidnet Asia Limited is regulated by the Hong Kong Securities and Futures Commission as a licensed dealer and a provider of automated trading services pursuant to the Securities and Futures Ordinance and is regulated by the Monetary Authority of Singapore as a Recognized Market Operator. Liquidnet Japan Inc. is regulated by the Financial Services Agency of Japan and is a member of JSDA/JIPF. Liquidnet Australia Pty Ltd. is registered with the Australian Securities and Investment Commission as an Australian Financial Services Licensee, AFSL number 312525, and is registered with the New Zealand Financial Markets Authority as a Financial Service Provider, FSP number FSP3781.