Babelfish Analytics

ClarityAbsolute

Full Service TCA.

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Complete Performance Attribution

Meet ClarityAbsolute, a new service that addresses the critical demand for multi-broker parent-level transaction cost analysis (TCA) services. With the shifting landscape of conflicted, broker-owned, and obsolete providers, Babelfish offers the best of all worlds—integrity, independence, and best-in-class methodology.

ClarityAbsolute finally solves the problem of performance attribution over the entire investment process with a proprietary model that benchmarks the entire trading life cycle from portfolio manager conception to venue fulfillment.  ClarityAbsolute accomplishes this task by aggregating information from order management (OMS), execution management (EMS), and broker routing systems.

This level of detail is unmatched by any other TCA provider.  ClarityAbsolute enables a trader to not only to pinpoint the source of costs, but to understand what action items are the most practical to prioritize, and to work with execution stakeholders to improve performance. 

For those buy-side firms that want to transition from another TCA vendor to ClarityAbsolute, note that Babelfish can accommodate processed or raw historical data extracted from any TCA provider.  We can also help to satisfy existing compliance, performance, or board reporting requirements.

Babelfish has invented a proprietary import process that allows ClarityAbsolute to ensure that data retrieved from buy-side OMS/EMS systems are accurate.

Some key ClarityAbsolute features:

  •  Analysis by portfolio manager, trader, broker, and algo.  Performance is not a “one benchmark fits all” proposition and performance should be tracked over the entire trading life cycle.  Benchmarking should be performed at various points to understand where improvements can be gained.

  •  Tie orders to routes.  Because we are able to receive parent-order level data from your OMS and the associated routing data from your brokers, we are able to not only understand total cost, but the specific reasons why costs were incurred.  This leads to detailed suggestions for improvement.

  •  Full attribution model.  We are able to fully attribute costs for the entire trading lifecycle.  This enables us to understand where every basis point of cost.

  • OMS data templating.  Standard extracts from an OMS or EMS frequently lead to “garbage in/garbage out” analysis, so we spend a lot of time ensuring that we understand how trading workflow is reflected in data files.  We make sure we know when orders start and are finished, and how they should be benchmarked, as well as how follow-on orders should be analyzed. 

Please contact us at LearnMore@babelfishanalytics.com for more details about ClarityAbsolute.