The TRADE 56 - Page 89

[ A L G O R I T H M I C T R A D I N G S U R V E Y ] JP Morgan J P Morgan saw a slight decrease in the percentage of responses from hedge funds in this year’s survey. One-third of respondents for the bank manage more than $50 billion of assets, while the remainder call came from mid-sized AuM brackets. Around half hedge fund respondents indicated that they are using JP Morgan algos to also trade foreign exchange and listed derivatives. Two-thirds of respondents said that their usage of the bank’s algos had increased year-on- year, some as much as 15%, while under one-quarter said they are considering adopting algos from other providers in future. Desired algo functionality includ- Morgan regarding fills and ed greater depth of JP information wider foreign exchange portfolio capabilities. Improve While JP Morgan has placed emphasis Year significant trader 2018 2017 RATINGS FOR ALGORITHM PERFORMANCE productivity 5.90 on its support and consulting services for algorithmic trading in the recent past, responses from its hedge fund users indicate mixed results. The bank saw a year-on-year increased score for its execution consult- ing capability, although its customer support rating fell over the period. However, JP Morgan outperformed the survey average for customer support, but not in execution consulting, the only category where it failed to do so. There were also year-on-year score increases in the improving trader productivity, reducing market impact, anonymity, price improvement and dark pool access categories for JP Morgan, although most of the bank’s ratings stayed consistent with last year’s results. The most significant decrease came in the customisa- Reduce Execution tion category, which dropped by 0.62 year-on-year. Speed Cost market impact consistency 5.85 5.81 5.78 5.78 5.42 5.79 5.71 5.73 2018 2017 5.90 5.81 Improve trader productivity Reduce market impact 5.85 5.78 Execution consistency 5.78 5.79 5.42 Cost 5.71 5.73 5.79 Speed 6.07 6.05 Anonymity 5.53 5.41 Price improvement 5.37 Customisation 5.99 5.85 6.02 Ease of use 5.36 Crossing 5.62 5.79 Customer support 6.09 5.54 5.46 Execution consulting Dark pool access 5.77 5.72 Smart order routing capabilities 5.63 5.77 0.00 1.0 0 2.00 3.00 4.0 0 5.00 6.0 0 7.00 Issue 56 // // 89 5.79 A P n r o i