[ A L G O R I T H M I C
T R A D I N G
S U R V E Y ]
Instinet
I
with around one-third saying usage had stayed the
nstinet performed comparatively well in the
same from the previous year and the rest recording
overall long-only survey in terms of responses,
increased use, some as much as 25%. The vast majority
drawing in a much higher proportion of replies with
of Instinet’s long-only clients are using Bloomberg as
3.16% compared to the year prior, when it received
just 1.67% of the overall. The firm attracted the most an EMS provider, with ITG and Fidessa also proving
popular.
responses from long-only respondents in the mid-
Instinet’s scoring was largely consistent with results
size range, managing between $1-50 billion in AuM,
from last year’s survey, although there were declining
with half a dozen clients coming from the over $50
scores year-on-year in half of the categories reviewed.
billion bracket. Over half of Instinet’s clients said
Reducing market impact, cost, speed, anonymity, ease
they were active in either ETFs or foreign exchange
of use and customer support all declined year-on-year,
products while only a few were trading fixed in-
with the largest fall coming in Instinet’s anonymity
come or listed derivatives.
capabilities. Despite this, anonymity has still one of
Around one-fifth Instinet
of long-only respondents for Insti-
net are considering adopting additional Improve
algo providers, the strongest scores for Instinet this year. Dark pool
Reduce
access was the Execution
only category in which
with greater customisation
feature
Year a highly desired
Cost Instinet scored
Speed
trader
impact
consistency
above
6, an increase
of 0.6 on last year and well above
among those assessing their options. Despite this, no market
the survey average of 5.67.
firm said their usage of Instinet algos productivity
had decreased,
2018
2017
INSTINET RATINGS FOR ALGORITHM
PERFORMANCE
5.75
5.54
5.49
5.52
5.81
5.67
5.35
5.76
Improve trader
productivity
5.97
2017
5.75
5.54
5.49
5.52
Reduce market impact
5.81
5.67
Execution consistency
5.35
Cost
5.76
5.85
5.97
Speed
5.76
Anonymity
6.18
5.39
5.26
Price improvement
5.55
5.43
Customisation
5.50
Ease of use
Crossing
5.78
5.52
4.89
5.51
5.69
Customer support
Execution consulting
5.27
Dark pool access
Smart order routing
capabilities
5.85
2018
5.61
6.00
5.34
5.42
0.00
1.0 0
2.00
3.00
4.0 0
5.00
5.89
6.0 0
7.00
Issue 55 // TheTradeNews.com // 87