Quantitative Services Group is to offer clients of the Harborside+ electronic trading platform access to T+1 performance analysis reports on individual executions.
QSG is an independent provider of trade analysis and analytical equity research (stock selection) for institutional investors, while Harborside+ offers a liquidity pool in excess of US$4 billion maintained through IOIs (indications of interest) submitted by buy- and sell-side traders.
“The reports, available to our clients the morning after an executed trade date, will provide independent verification and analysis of how their trades fared from an execution standpoint, measure market impact and illustrate overall, how they did using our large block trading model,” says Harborside+ President & CEO, Michael Cashel.
The QSG reports will quantify both quality of execution and the benefits of selecting Harborside+, relative to intra-day measures. A ranking will depict a Harborside+ execution for a respective customer, in relation to other executions on the same trade date. Harborside+ is a confidential service and, as such, the identity of clients will not be revealed to QSG; only details specific to the trade being analyzed. Additionally, QSG has signed non disclosure agreements with Harborside+.
“Providing traders with best execution reports and transaction cost analysis on a quarterly basis just doesn’t cut it,” says John Wightkin, co-founder, Quantitative Services Group. “What’s most meaningful is a near immediate understanding, and now clients of Harborside+ will have tangible evidence of how well they did in a T+1 (trade date plus one) framework.”
Harborside+’s hybrid approach of technology and human intervention has proven successful for trading large blocks, especially when negotiating for larger sizes and accommodating conditional requirements. Harborside+ pre-qualifies buyers and sellers of size to minimize market impact and maximize trade size. IOIs start at a 25,000-share minimum. Harborside+ has the largest average crossed trade size in the industry at 72,000 shares per trade. Traders submitting IOIs to the Harborside+ confidential matching engine indicate side (buy or sell), symbol and price. IOIs can be accepted by Harborside+ through a variety of channels such as integration with a firm’s order management system or via a FIX connection.
When the system locates a potential match, the Harborside+ member database contributes unique customer provided information that increases the fluidity of the negotiation process. Harborside+’s trading desk then assists counterparties in finalizing the transaction through private, phone-based communication that keeps identities confidential. Trades are executed by Harborside Securities, a totally independent registered broker-dealer.
Based in Naperville, Illinois, Quantitative Services Group is an independently owned consulting.