Institutions face unique challenges when it comes to executing digital asset transactions efficiently, according to an update from Talos.
The digital asset market is “highly fragmented” across numerous exchanges, platforms and dealers globally. At Talos, they are committed “to simplifying institutional adoption of digital assets, and we understand that they need the familiarity of the institutional infrastructure that exists in traditional asset classes.”
To evaluate and optimize the effectiveness of their execution strategies, many institutions rely on post-trade analytics, “including transaction cost analysis (TCA).”
For institutions, data visualization becomes especially important given the large trading volumes involved. By evaluating trading outcomes “along multiple dimensions (e.g., by market, symbol, strategy) users can quickly recognize patterns, make comparisons and identify outliers.”
The insights gained can “help trading firms identify ways to adjust their execution strategies.”
That’s why Talos is pleased “to introduce a new Analytics interface, directly in the Talos trading platform, that comprises a set of interactive dashboards displaying a client’s historical execution data.”
Clients can now view their activity “broken down by symbol, market or strategy; by month or by day.” Historical data will be available “to allow for year-over-year as well as month-over-month analyses.”
The user experience is seamless and intuitive, with the ability to navigate between different levels and groupings of data. Highlights include:
- Time series data of volumes by market (exchanges and dealers), by symbol and by strategy; month-over-month or day-to-day views within a month
- Symbol-level level volumes over time, cross-tabulated by market
- Symbol-level daily detail includes quoted spreads for a range of sizes, displayed in the context of market prices and volumes
- Realized spread costs by market, including fees
- Market-level data includes market uptimes (as experienced by each client) and dealer round-trip latency from order to fill/reject
- Strategy-level TCA include aggregate slippage versus arrival, interval VWAP, and interval TWAP, as well as execution markouts across child orders for algo and smart order router parent orders
Soon Talos says they plan “to roll out Advanced Post-Trade Analytics, which will include real-time, algo-level and order-level performance (e.g., slippage, markouts, volume participation, maker rate).”
This initial version represents the “foundation” of their Post-Trade Analytics platform.
Building on this foundation, their more advanced Post-Trade Analytics will “enable users to drill into performance at the order level and in near real time.”
