NEX Markets, a NEX Group (LON:NXG) business which provides electronic trading technology services in the fixed income and foreign exchange (FX) markets, announced today that it has launched NEX Quant Analytics, a FX market comprehensive community-based analytics tool for clients trading on the EBS platform.
Individual banks and trading houses may use similar analytics internally, but there has previously been no comparable level of detail offered at a market level. Using benchmark data taken from the entire EBS ecosystem, the analytics service delivers real and measurable insight for clients into their own trading activities and the ability to look at their performance versus that of their peers.
NEX Quant Analytics helps clients analyse their individual and relative performance and conduct regular reviews to improve future performance. The analytics services provides clients greater insight into their bilateral trading relationships, their possible profitability versus EBS averages for similar trades across the EBS community, liquidity provider performance, where markets traded, order book arrival times, spreads and liquidity at top of the book.
Providing detailed trade analysis and symmetrical sharing of this data between liquidity consumers and providers enhances client trading execution performance and supports tighter spreads for liquidity consumers, lowers reject rates and reduces market impact on client trades. The benefits for both liquidity consumers and liquidity providers on the EBS Direct and EBS Select platforms in particular, are expected to be significant and will help to create long-term, sustainable bilateral trading relationships.
Seth Johnson
Seth Johnson, Chief Executive Officer, NEX Markets, said:
There’s never been such a comprehensive analytics tool based on the broader trading community before. NEX Quant Analytics will be invaluable for clients wanting to improve their execution and is the latest development in NEX Markets’ drive to create a fairer, more transparent and healthier trading environment in the FX market.
Clients can access the data via regularly scheduled reports, tailored according to need, through their Sales and relationship managers and individual dashboard access for clients upon request. For individual clients, data with their trading partners will be specified, while community-based comparable data will be anonymised to provide an overall picture. Overall, data will demonstrate the impact of trading for both individual clients and the market as a whole.
The advanced capabilities of NEX Quant Analytics combined with EBS’s position in the FX market ensures that the data provided to clients, offers a level of granularity that does not exist elsewhere in the market.
The below graph is an example of the level of detail provided by NEX Quant Analytics.
This particular graph shows EURUSD general information with the EBS trading ecology, trade activity time periods, order book arrival times, top of book spread distributions and liquidity.