Speaking to The TRADE, Rob Kirby, head of EMEA sales and business development at QuantHouse, explains: “Quod are a great partner of ours and have been for a number of years. We work closely with them, and also with other OMS/EMS providers as well. We are data agnostic and those types of partners are absolutely critical for QuantHouse.

“Quod has integrated all of the historical market data now, which gives us and them, the opportunity to onboard more and more clients within that space even more efficiently.”

Specifically, through the strategic partnership, QuantHouse’s low-latency and historical data will be used to train QuodFinancial’s AI/machine learning models to adapt to and anticipate market movements.

The AI-driven trading algorithms will enable trading firms to carry out real-time, highly accurate transaction cost analysis (TCA) at the point of execution. As a result, traders will not need to manually adjust their TCA assumptions or trading strategies in the event of unexpected market events.  

“QuantHouse has got a reputation in the marketplace for low latency, high performance normalised market data which is critical to exchange-type customers. We have MTFs as long-standing customers but we also have a decent proportion of OMS, EMS partners as well. They like using our data because of the reliability and the speed of it,” asserts Kirby.  

Read more – Buy-side set to leverage newly combined real time and historical BMLL and Quanthouse offering

Across the trading ecosystem, market participants are highly cognisant of the importance of avoiding a “garbage in, garbage out” situation when it comes to data and technology, in particular when coupled with the theme of AI. Subsequent algorithms are only as effective as the data which powers them.

Speaking in an announcement on Tuesday, Medan Gabbay, chief revenue officer at Quod Financial asserted the importance of solid technological infrastructure when it comes to data automation: “In financial services, the performance of your technology is defined by the quality and speed of the data that powers your systems. This has never been more true or more important than now, as we go through a transition of data automation and AI/ML.”

As AI gains traction across the industry, there has understandably been some trepidation about what the incorporation of this technology could entail.

Read more – The buy-side on AI: ‘The fear is real, but the rewards are there’

Speaking to this, Kirby highlights that though market participants are cautious, particularly in such a highly regulated industry, the increasing use of AI is an inevitable development.

“Clients are always looking for optimal ways to cut costs and increase the efficiency of what they’re doing. If you look at the way AI and machine learning looks at data, and the huge amounts of data sets which are only becoming larger, AI is a clear answer. There are ways of providing risk mitigation, which will allay some of the fears that are in the marketplace today.

“AI is not just a big buzz word, it’s being deployed in ways which are completely changing the industry. It is bringing in huge cost efficiencies and is allowing some of these traders to be able to focus on exactly what they should be focusing on – the execution part of the strategy. That’s, I think, the most exciting thing.”

The post Quod Financial to use QuantHouse data to refine AI-driven trading platforms appeared first on The TRADE.

Refinitiv and trading technology provider Quod Financial have 

The system will cover front- to middle-office services including pre-trade risk, order routing and order management, algorithmic trading, smart order routing, middle-office, trade reporting, and analytics. 

“The sell-side is ripe for disruption with many incumbent providers failing to shift from legacy technology solutions that are no longer cost effective or fit for purpose within current market conditions,” said Ian Mawdsley, head of equity trading proposition at Refinitiv. 

“In seeking to promote our data, desktop and connectivity solutions, Refinitiv has found the perfect strategic partner in Quod Financial and look forward to together taking the next steps in providing trading solutions to the sell-side of the market.” 

The OMS solution will be available to clients in Asia, Europe, and the US, and is powered by Refinitiv’s data feed solutions.

“The trading technology market has seen consolidation and turmoil in the past 24 months. Sell-side firms are starved for the viable solution to address their current needs as well as position them for the future,” said Medan Gabbay, Quod Financial chief revenue officer.

“This partnership is strategic for Quod Financial to offer an all-in data, network, and OMS product to the market. More importantly, we are working together to provide the next iteration of data-driven trading technology and with it, the greatest leap of the past 30 years in e-trading”.

News of the partnership between Quod Financial and Refinitiv follows Bloomberg’s decision to shut down its own execution and OMS for the sell-side in early 2019 to focus on its more profitable business lines. Bloomberg’s former trading system clients have been transitioning to other systems providers such as Itiviti.

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