[ 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 recorded a small increase in the percent-
age of long-only respondents in this year’s survey,
although only JP Morgan was below the broker in this
ranking among the profiled providers. Over half of
long-only respondents for Instinet manage more than
$10 billion of assets.
The story of this year’s algo trading survey for Ins-
tinet was one of consistency, marked with a few areas
of significant improvements, according to long-only
respondents. The firm recorded an overall score of
5.77, just above the long-only survey average of 5.74
and a small improvement year-on-year (5.64 in 2017).
Instinet recorded consistent year-on-year scores in the
increasing trader productivity, execution consistency,
anonymity, execution consulting, and flexibility and
sophistication of smart order routing categories. There
were significant improvements in cost (up 0.66),
customer support (up 0.59) and ease of use (up 0.52).
However, there were some areas where Instinet’s per-
formance declined, according to respondents, includ-
ing the customisation category (down 0.19 to 5.36) and
dark pool access (down 0.32 to 5.68). Instinet recorded
respectable scores within this year’s new categories,
with 5.46 for algo monitoring capabilities and 5.90 for
data on venue/order routing logic or analysis.
INSTINET RATINGS FOR ALGORITHM PERFORMANCE
Increase trader
productivity Reduce market
impact Execution
consistency Cost Speed Anonymity Price
improvement Customisation
5.85 5.85 5.69 5.91 5.89 5.69 5.67 5.36
Ease of use Customer support Execution
consulting Dark pool access Flexibiltiy and sophistication
of smart order routing Algo monitoring
capabilities Data on venue/order
routing logic or analysis Average
score
6.02 6.10 5.68 5.68 5.87 5.46 5.90 5.77
KEY STATS
6.10 5.36 55%
Highest score
(customer support) Lowest score
(customisation) Most popular non-equity asset
traded via algo by respondents:
Exchange-traded funds
+0.66 -0.32 38%
Most improved
year-on-year score
(cost) Least improved year-on-year score
(dark pool access) Most used algo
performance measurement
method: VWAP TCA
84 // TheTrade // Spring 2019