Headlines

Pragma launches new benchmark to help traders measure execution quality and identify trading signals

Pragma, a multi-asset quantitative trading technology provider, has published a new research paper highlighting the difficulties traders face when attempting to measure execution quality.

Even as algo wheels are used by more traders, the challenges of accurately identifying the better performing algorithm remain. With limited data available to most traders…

…That’s a view shared by Pragma chief business officer Curtis Pfeiffer…

The award winning quantitative technology provider that strives to connect traders to markets in a more transparent and intelligent manner.

The volatility experienced across the FX market was widely reported during the first quarter of this year. As a result, algorithms (‘algos’) have been utilised by many in the sector to ensure stability in their position and in the execution of their trades during this period….

…From the start of this year through Friday, about 23% of trading volume in the 3,000 largest stocks by market value has taken place after 3:30 p.m., according to data from Pragma LLC. That’s compared with about 4% from 12:30 p.m. to 1 p.m.

…Curtis Pfeiffer, chief business officer at multi-asset quantitative trading technology provider Pragma, said in an email to Markets Media that, in times of extreme volatility, investors need the certainty of execution while having confidence they are still following best execution policies.

…If vendors provide order-level execution details to their clients, those clients will be able to uncover any potential conflict of interest by reviewing the trading data, adds Pragma chief business officer Curtis Pfeiffer.

…Curtis Pfeiffer, chief business officer at a multi-asset quantitative trading technology provider Pragma, also agreed that the results highlight the importance of London to global FX markets and the long-term trend of sustainable growth.