The investment and corporate banking arm of BMO Financial Group is partnering with quantitative analytics vendor Trade Informatics (TI).
BMO Capital Markets is partnering with quantitative analytics vendor Trade Informatics (TI) to apply transaction cost analysis (TCA) tools to its algorithmic trading flow with the goal of improving execution quality for clients, officials say.
The investment and corporate banking arm of BMO Financial Group “will begin seeing actionable analysis from the engagement after onboarding completes in approximately four to six weeks,” Allan Goldstein, chief operating officer (COO) of Trade Informatics, tells FTF News.
This partnership will allow BMO to measure and evaluate trade decisions with personalized systematic trading technology that is customized to match its clients’ investment processes and is based on comprehensive third-party analytics, officials say.
The firm is “always looking for ways to improve trading performance for our clients,” says David Porcelli, co-head of global trading, BMO Capital Markets, in a prepared statement. “Our focus is to gain a better understanding of our order flow, in a way that complements our existing offering across trading products. Trade Informatics will ultimately help our clients verify and understand the quality of their trades, enabling them to make better and more informed decisions.”
Working with TI is in line with BMO Capital Markets’s efforts to “maximize trading alpha across institutional orders, while improving work flow and execution quality across the bank’s overall trading franchise,” officials say.
TI provides analytics via platform the Trading Analysis Program (TAP) application, described as “TI’s proprietary business intelligence application for institutional investment professionals to demonstrate best execution, reduce costs, and, ultimately, maximize alpha,” according to the vendor. “The actionable insights we provide are backed by the TAP application, comprehensive reporting, analyst support, consultative guidance, and ongoing performance monitoring, officials say.
Some aspects of the TCA include:
- A way to translate execution management system (EMS) and order management system (OMS) data sources into perspectives that match workflows;
- Performance attribution and the reporting of entire execution process;
- A reporting tool for ranking, performance attribution and peer comparisons;
- And coverage of 80 global markets
“The analysis [from the analysis program] is designed to allow client-facing staff add value to their interactions by arming them with a lexicon and guiding clients toward greater optimization of trading strategies,” Goldstein says.
The reward for TI from the partnership will be to work with “influential sell-side institutions such as BMO [Capital Markets] along with TI’s roster of the largest global asset managers,” Goldstein says.
BMO Capital Markets is a North American-based financial services provider, with approximately 2,500 professionals in 30 locations around the world, including 16 offices in North America, officials say. The firm offers corporate, institutional and government clients a range of investment and corporate banking products and services.
Trade Informatics offers quantitative trading analytics solutions and helps market participants with trading performance measurement, trade analysis, consulting, trade reporting, customized systematic trading and centralized workflow management, officials say.