Virtu launches big data tools for the buyside

Darren Sinden

Leveraging existing data science capabilities is a clever retention tool, particularly if that data analysis can show your customers that you are doing a good job

ICE senior executive Zohar Hod prepares to support startups

Non-bank market maker and high-frequency trading company Virtu Financial has launched a new set of tools specifically aimed at the buy-side.

The two new products which are called Open Intell and Open Python are designed to facilitate big data analytics for Virtu’s customers.

Open Intell, which is powered by Amazon Web Services, will allow users to outsource the retrieval and enrichment of large data sets to Virtu’s data science teams. Where the data can be interrogated analysed using machine learning and artificial intelligence techniques to quickly provide insights and intelligence.

Open Python is described as self serve option for those clients who have their own data engineering abilities once again Open Python is powered by Amazon’s cloud computing ecosystem and works in combination with Virtus’s existing Open Technology API’s.

Virtu’s Open APIs are a source of cleaned and normalized market data that clients can help Virtu clients to backtest investment strategies, measure their execution performance and analyse their trading costs.

Speaking about the new data tools Erin Stanton, Global Head of Analytics Client Services and Coverage at Virtu said that: “Not all organizations have the resources to build-out and maintain entire data science teams—and this is where the concept of outsourcing with an experienced and trusted partner really makes sense ”

She added that “Our global team of data analysis experts can act as an extension of a client’s internal trading desk/TCA group”

TCA or transaction cost analysis is becoming an increasingly important tool for institutional investors and other large scale traders fragmentation in the markets means that those organisations that are managing and handing out large orders want to be sure that they are being executed most efficiently.

Buy-side trading desks are also interested in measuring metrics such as market impact and price volatility during the lifetime of an order or series of orders. To undertake that analysis holistically requires the use of large data sets drawn from a variety of different liquidity sources and execution venues and the in house ability to manage and manipulate that data.

Understanding which venues, algorithms and methodologies work best for the execution of your business and of course identifying those that don’t is an increasingly key part of modern trading.

We recently wrote about the increasing importance of data science to both sides of the business. However, sell-side firms seemed to better organised and have something of first-mover advantage, and they were found to be more likely to invest in these new technologies.

Leveraging existing data science capabilities is a clever retention tool, particularly if that data analysis can show your customers that you are doing a good job for them.

Refinitiv’s annual report into the use of AI and machine learning found that data quality and availability were among the biggest barriers to the wider adoption of these data science techniques. These are exactly the sort of obstacles that Virtu’s initiative is trying to overcome.

Virtu Financial will report Q4 2020 earnings on the 11th of February.

Read this next

Institutional FX

Integral reports lowest FX volume in two years

Foreign exchange trading volumes dropped in November across Integral’s trading platforms as currency markets saw a relatively quiet period after consecutive months of strong trading activity.

Technology

CDEX: Avelacom announces connectivity to Cboe Europe Derivatives

“We anticipate that many of our customers from Asia will be particularly interested in getting exposure to pan-European products via just one venue, which CEDX offers.”

Retail FX

BUX acquires Spanish Ninety Nine’s retail brokerage unit

“Thanks to this acquisition, Ninety Nine users will have access to a wide range of services provided by BUX, such as investing in Spanish, European and US stocks, ETFs, cryptocurrencies, fractional investing and the BUX Savings Plan.”

Digital Assets

SEBA and HashKey partner to expand crypto in Hong Kong and Switzerland

SEBA Bank AG has announced a new strategic partnership with HashKey Digital Asset Group as part of both firm’s expansion efforts in Hong Kong SAR. 

Executive Moves

Broadridge appoints Martin Koopman as Chief Product Officer

“Martin has a proven record of driving product innovation both at Broadridge and at previous companies. His vision and proven ability to execute will be invaluable as we become the foremost SaaS provider to the financial services industry.”

Digital Assets

DAM rolls out Moonwalkers v1 testnet ahead of support for yield-generating collateral

“We want to champion innovation by making it easier to securely direct stablecoin liquidity away from Ethereum towards newer networks without the constant vulnerabilities posed by bridges. d20 will help accelerate the adoption flywheel of emerging networks, and this is our first step towards making our omnichain promise a reality.”

Institutional FX

FIA EXPO: ICE’s Brian Norris talks ESG investment, carbon credits and market data

The FIA Futures & Options Expo, now in its 38th year, convened the listed derivatives dealers, thought industry leaders and other stakeholders for two days of networking.

Retail FX

Malaysia regulator exposes OctaFX clone, shady FB profiles

Malaysia’s financial regulator today warned online investors about the risks of following investment tips made on social-media platforms.

Digital Assets

Crypto trading volume spikes at Swiss bourse amid FTX collapse

The shockwaves from the historic collapse of Sam Bankman-Fried’s crypto empire are still being felt across the industry, but some trading venues are actually doing better because of it.

<