What We Do
Babelfish Analytics provides analysis and consulting services to Money Managers, Investors, Brokers, and Trading Venues to measure the impact of execution decisions. By creating transparency in this once opaque marketplace, Babelfish Analytics provides trading proferssionals with a greater understanding of routing and brokers with a framework to improve their client’s execution experience.
Today's markets are complex. Approximately 95%+ of all US equities are executed by machine across dozens of exchanges, dark pools, and internalizing brokers. To provide quality execution, brokers need to monitor data and executions by the microsecond. How brokers choose venues, sequencing, and the way they interact with trading venues is critical to the success of their clients’ execution experience.
Babelfish Analytics measures not just equity execution but execution routing, allowing money managers to analyze their routing process, methodology, order types, fees, latencies, success rates, leakage, and execution quality of their US equity trading.
Difference between Venue and Routing Analytics and TCA
Babelfish Analytics the world's first equities venue and routing analytics service.
Babelfish Analytics analyzes the impact of an order as it gets filled. Babelfish Analytics analyzes routing information while traditional Transaction Cost Analytics measures only executions. An order may be presented at 15 venues before it gets executed. At each stop this order can leak valuable information which directly impacts execution quality. Balancing the opportunity cost of shopping the order for a better price, versus going directly to known liquidity is a difficult decision. Babelfish Analytics helps investors and their trading partners answer these questions.