[ 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 // TheTradeNews.com // 87
6.63
A P
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