NEW YORK, March 12, 2015 /PRNewswire/ -- Abel Noser Solutions (ANS) and IEX, two trailblazers in market structure, are teaming up to survey execution quality on IEX's innovative equity trading venue. IEX has signed an agreement to license ANS' equity trading data to better evaluate subscriber performance and execution quality on its venue.
"Abel Noser Solutions and IEX share a common desire to make markets fair and transparent for all participants. The trading industry is quickly realizing that IEX's focus on leveraging state-of-the-art technology to slow down markets—and not speed them up—is a superior approach that enables more block trades, deeper liquidity and less toxicity than other markets," said Ted Morgan, Chief Operating Officer of ANS. "By providing proprietary data and analysis to IEX, including fill level analysis that measures data up to the millisecond, Abel Noser Solutions is confident that we can help the platform validate its approach and enhance execution quality analysis."
ANS is a market leader in transaction cost analysis, or TCA, a process which looks at how well exchanges, brokers, crossing networks and institutions execute trades. ANS collects, aggregates and benchmarks data from over 500 clients to see who has the lowest execution costs. The company makes that determination by looking at "slippage"—or the difference in price when an order was placed and when it was executed—as well as taking into account commissions, fees, bid-ask spreads and taxes. Increasingly, TCA also evaluates specific execution venues in an effort to detect information leakage and adverse selection. The company will then provide this data to IEX on a quarterly basis in order for IEX to enhance analysis of trading on its own market as compared to that on other venues.
"We at IEX take pride in our cutting-edge technology and balanced market design, but it only matters to investors and their fiduciaries if we can support our trading performance with third party metrics that are also trusted. We are proud to partner with Abel Noser to validate, measure and benchmark the high quality execution that more and more stakeholders are receiving by trading on IEX," said Brad Katsuyama, Chief Executive Officer and Co-Founder of IEX.
Since launching in October 2013, IEX has quickly received accolades from traders, investors, market participants, industry analysts and journalists—including a mention in the Michael Lewis bestseller Flash Boys—while also seeing a sharp increase in volumes. In January 2015, IEX averaged volumes of 133 million shares, or roughly 1% of all equity trading volumes. According to an SEC paper on Alternative Trading Systems (ATS; also known as "dark pools"), IEX's average order size and fill size exceeded that of the five largest ATS and the average of all venues, including traditional exchanges.
About Abel Noser Solutions
Abel Noser Solutions is an independent, broker-neutral Transaction Cost Analysis (TCA) company, measuring over $7.5 trillion dollars in traded principal annually in equities, and $3.5 trillion in FX. ANS provides comprehensive pre-trade, real-time and post-trade tools to institutional investors through Trade-Zoom™, its industry-leading, web-delivered suite of analytic tools. Each day, ANS collects trade data from over 500 firms, and market data from over 70 global exchanges and trading venues, covering over 40,000 stocks and 215 currency pairs, representing one of the most comprehensive views of the industry. Clients receive actionable analysis at every point in the trade lifecycle from ANS' innovative suite of products.
IEX is the first equity trading venue seeded by a consortium of buy-side investors, including mutual funds, hedge funds, and family offices. Their unique ownership consortium represents a cross-section of traditional investors who are all dedicated to a fair and balanced market that works for all participants. IEX operates a fair-access platform for any qualified broker dealer, and was built on the principle of investor protection, delivered through its proprietary anti-colocation architecture and simplified pricing and rule set. IEX was featured in the best-selling book, Flash Boys, written by Michael Lewis. IEX Services LLC is a member of FINRA/SIPC.
View stats and learn more at www.iextrading.com and follow IEX on Twitter @IEXTrading
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SOURCE Abel Noser Solutions