Pre-Trade Analysis

摘要

Brokers are developing pre-trade analytics in connection with their algorithms to help buy-side customers determine the best algorithms to use. These tools will help traders calculate the expected market impact of potential trades. Why It's Important: Today, buy-side traders want immediacy and pre-trade analytics are tools that can be used at the trader's desktops rather than having to call a sales trader for the information. These analytics determine, for example, that a particular trade can be executed with less market impact. In the past, post-trade analytics were all that were available—analysts and portfolio managers would look at past trends to determine potential future outcomes. There is more emphasis on pre-trade analytics today because of the increase in electronic trading; instead of sharing assumptions on the market impact of a trade with a sales trader, buy-side firms have to interact with a black box.