[ A L G O R I T H M I C
T R A D I N G
S U R V E Y ]
Bloomberg
B
algos from other providers, while all but one respon-
loomberg will have every reason to be disappoint-
dent use the firm as its EMS provider as well.
ed with its results in the hedge fund portion of
Hedge fund respondents were extremely critical
this year’s algo survey. The data specialist received the
of Bloomberg algos in this year’s survey, ranking the
lowest percentage of responses of all providers pro-
firm bottom of the profiled providers in 11 of the 12
filed, although this was consistent with its percentage
categories reviewed. While there were decreases in
in last year’s survey, as well as the lowest scores in all
scoring for many providers this year, Bloomberg saw
but one of the categories reviewed.
their scores drop below 4 in all but two categories.
Two-thirds of respondents were from the $1-10 bil-
Respondents scored Bloomberg under 3 for crossing
lion in assets under management range, with one from
(2.61), customer support (2.57), execution consulting
the larger end of the range with $10-50 billion in AuM.
(2.75) and dark pool access (2.61), while its score for
All of Bloomberg’s hedge fund respondents said usage
price improvement fell by 3.3 points year-on-year to
of algos had either stayed consistent or increased year-
Bloomberg
2.07 in this year’s survey. The firm’s highest score was
on-year, some as much
as 25%. Despite the low scores
Improve
4.56, for both its improving trader performance and
handed to Bloomberg this year, only one-third
of
Reduce
Execution
hedge fund respondents Year
said they are looking
trader to adopt cost categories.
Cost
Speed
2018
2017
RATINGS FOR ALGORITHM PERFORMANCE
productivity
4.56
market impact
consistency
3.15
5.89
3.10
5.89
4.56
5.63
6.27
4.56
Improve trader productivity
Reduce market impact 3.15
Execution consistency 3.10
5.63
6.27
3.15
5.77
3.69
6.11
2.07
Price improvement
5.38
3.15
Customisation
5.57
3.69
Ease of use
5.92
2.61
Crossing
4.99
2.57
Customer support
5.65
2.75
Execution consulting
5.75
2.61
Dark pool access
5.46
3.15
Smart order routing capabilities
0.00
82 // TheTrade // Summer 2018
1.0 0
2.00
2017
5.89
Cost
Anonymity
2018
5.89
4.56
Speed
3.15
3.00
4.89
4.0 0
5.00
6.0 0
7.00
5.77