The TRADE 59 - Q1 2019 | Page 92

[ A L G O R I T H M I C T R A D I N G S U R V E Y ] UBS U BS saw a slight increase in the percentage of responses from long-only buy-side firms in this year’s survey. The majority of long-only respondents for UBS came from the $1-10 billion of assets under management size bracket (one-third), with a marginal- ly smaller percentage managing more than $50 billion. UBS was the stand-out performer among the banks profiled for this year’s survey, recording the highest average score of all banks profiled with 5.76, also the long-only survey average. UBS also recorded some of the most improved year-on-year scores in this year’s survey, addressing some of its areas of poor perfor- mance in the 2018 survey. The bank saw increased scores from long-only respondents in 13 of the 15 cat- egories under review (the other two being new cate- gories introduced this year), with significant increases for increasing trader productivity (up 0.67), reducing market impact (up 0.56), execution consistency (up 0.45), speed (up 0.73), price improvement (up 0.74), customisation (up 0.46) and customer support (up 0.52). UBS’ lowest score this year was in the algo monitoring capabilities category (introduced this year) with 5.51, still the seventh-highest score in this area of profiled providers. UBS RATINGS FOR ALGORITHM PERFORMANCE Increase trader productivity Reduce market impact Execution consistency Cost Speed Anonymity Price improvement Customisation 5.81 5.77 5.82 5.69 5.91 5.98 5.62 5.67 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 5.87 5.86 5.57 5.92 5.85 5.51 5.53 5.76 KEY STATS 5.98 5.51 27% Highest score (anonymity) Lowest score (algo monitoring capabilities) Most popular non-equity asset traded via algo by respondents: Exchange-traded funds +0.74 +0.20 43% Most improved year-on-year score (price improvement) Least improved year-on-year score (flexibility and sophistication of smart order routing) Most used algo performance measurement method: Implementation shortfall TCA 92 // TheTrade // Spring 2019