big xyt Reveals New Liquidity Analysis Tool for Buy-Side

Wednesday, 06/12/2023 | 09:07 GMT by Damian Chmiel
  • The companies launched a tool for enhanced equity portfolio liquidity analysis.
  • The new solution aids fair client treatment and efficient cashflow management.
trading

big xyt, a data and analytics solutions provider to the financial industry, has partnered with Baillie Gifford to unveil a Portfolio Liquidity Analysis solution. This tool, designed for buy-side firms, facilitates an independent assessment of equity portfolio liquidity using consistent market data.

big xyt and Baillie Gifford Launch Portfolio Liquidity Analysis Tool

Investment management involves a process where a dilution levy is applied as part of cash flow management in pooled vehicles. This strategy is crucial in ensuring fair client treatment and reducing the impact of cashflow-related price volatility. The new solution by big xyt, a component of its Open Transaction Cost Analysis (TCA) for execution analysis, confronts the challenges buy-side firms face, especially in obtaining and processing accurate data over time.

One of the key functionalities of this solution is its capability to define what constitutes addressable volumes, thus creating a more realistic basis for dilution levy calculations. This approach helps to avoid unnecessary data sharing with banks and brokers, which might lead to information leakage.

"It addresses the major challenges faced by investment managers when managing portfolio liquidity," said Mark Montgomery, the Head of Strategy and Business Development at big xyt. He further emphasized the solution's efficiency in reducing operational risks.

The tool is designed to minimize trading impact on fund performance, allowing investment managers to test scenarios under volatile conditions. The use of trading data in calibrating market impact estimates enhances the accuracy of these models.

"Our aim was to create a robust dilution adjustment and a threshold process for large deals, that is in the best interests of our clients, with high regulatory standards," Adam Conn, the Head of Trading at Baillie Gifford, added.

The tool's Open TCA results are showcased through interactive, web-based dashboards, offering customizable views.

New Trade Verification Tool by big xyt

In May, big xyt revealed its Trade Verification Tool, designed to provide instantaneous insights into price reversion and execution performance for any trade. The tool specifically aims to enhance transparency in ETF execution quality and offers a streamlined approach for scrutinizing suspicious trades in a fragmented market environment.

big xyt has established a diverse clientele, including investment banks, asset managers, prominent exchanges, trading venues, ETF issuers, and regulatory bodies. Its extensive tick data analytics ecosystem encompasses over 120 trading venues, covering a range of markets like equities, ETFs, FX, and listed derivatives.

In a separate move to bolster its international presence, big xyt expanded its executive team by appointing Anthony Huck as the Head of the Americas. His responsibilities include aligning the company's solutions with the strategic requirements of the global trading and investment community.

big xyt, a data and analytics solutions provider to the financial industry, has partnered with Baillie Gifford to unveil a Portfolio Liquidity Analysis solution. This tool, designed for buy-side firms, facilitates an independent assessment of equity portfolio liquidity using consistent market data.

big xyt and Baillie Gifford Launch Portfolio Liquidity Analysis Tool

Investment management involves a process where a dilution levy is applied as part of cash flow management in pooled vehicles. This strategy is crucial in ensuring fair client treatment and reducing the impact of cashflow-related price volatility. The new solution by big xyt, a component of its Open Transaction Cost Analysis (TCA) for execution analysis, confronts the challenges buy-side firms face, especially in obtaining and processing accurate data over time.

One of the key functionalities of this solution is its capability to define what constitutes addressable volumes, thus creating a more realistic basis for dilution levy calculations. This approach helps to avoid unnecessary data sharing with banks and brokers, which might lead to information leakage.

"It addresses the major challenges faced by investment managers when managing portfolio liquidity," said Mark Montgomery, the Head of Strategy and Business Development at big xyt. He further emphasized the solution's efficiency in reducing operational risks.

The tool is designed to minimize trading impact on fund performance, allowing investment managers to test scenarios under volatile conditions. The use of trading data in calibrating market impact estimates enhances the accuracy of these models.

"Our aim was to create a robust dilution adjustment and a threshold process for large deals, that is in the best interests of our clients, with high regulatory standards," Adam Conn, the Head of Trading at Baillie Gifford, added.

The tool's Open TCA results are showcased through interactive, web-based dashboards, offering customizable views.

New Trade Verification Tool by big xyt

In May, big xyt revealed its Trade Verification Tool, designed to provide instantaneous insights into price reversion and execution performance for any trade. The tool specifically aims to enhance transparency in ETF execution quality and offers a streamlined approach for scrutinizing suspicious trades in a fragmented market environment.

big xyt has established a diverse clientele, including investment banks, asset managers, prominent exchanges, trading venues, ETF issuers, and regulatory bodies. Its extensive tick data analytics ecosystem encompasses over 120 trading venues, covering a range of markets like equities, ETFs, FX, and listed derivatives.

In a separate move to bolster its international presence, big xyt expanded its executive team by appointing Anthony Huck as the Head of the Americas. His responsibilities include aligning the company's solutions with the strategic requirements of the global trading and investment community.

About the Author: Damian Chmiel
Damian Chmiel
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About the Author: Damian Chmiel
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
  • 2071 Articles
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