The TRADE 56 - Page 87

[ 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 nstinet will have a number of reasons to be satisfied with its showing in this year’s hedge fund algo survey, although it was unable to surpass the already high scor- ing bar it set last year. The firm saw a slight increase in the percentage of responses from hedge funds this year, with over half of respondents managing more than $10 billion of assets, from a range of trading markets includ- ing listed derivatives, fixed income, foreign exchange and ETFs. All but one of Instinet’s hedge fund respon- dents indicated that they have recorded increased usage of the firm’s algos, as much as 25% year-on-year in some instances. Only one respondent said they were current- ly using algos from Instinet other providers, to fulfil a need for greater customisation options, while just Improve under half Year 2018 2017 RATINGS FOR ALGORITHM PERFORMANCE of hedge fund respondents are reviewing adopting addi- tional algos in future. Similarly to many of the other providers profiled in this year’s hedge fund survey, Instinet recorded mostly declining year-on-year scores from respondents, however these were largely in line with the overall survey averages, with the largest decreases in scores for Instinet came in the cost, speed and customer support categories. The firm outperformed the survey average in all but one category. Instinet scored over 6 for its dark pool access (6.34), reducing market impact (6.11) and anonymity (6.12) capabilities, while its cus- tomisation functionality drew the highest score of the category this year (5.96). Reduce trader market impact productivity 5.66 6.11 6.08 Execution consistency Cost 5.76 5.92 Speed 5.20 6.44 6.10 5.66 Improve trader productivity 5.81 2018 2017 6.08 6.11 5.92 Reduce market impact 5.76 Execution consistency 6.44 5.20 Cost 6.10 5.81 Speed 6.63 6.12 Anonymity 5.61 Price improvement Customisation 6.00 5.70 5.96 5.80 Ease of use 5.30 Crossing 6.28 5.53 5.69 Customer support 6.49 5.81 Execution consulting Dark pool access 6.45 6.09 6.34 5.57 5.97 5.98 Smart order routing capabilities 0.00 1.0 0 2.00 3.00 4.0 0 5.00 6.0 0 7.00 Issue 56 // // 87 6.63 A P n r o i