With the increasing concerns about today’s hyper-competitive and cost-conscious
trading environment, pre-trade analytics have become a critical tool for institutional
investors. The value of equity pre-trade analysis is determined by its ability to
accurately forecast the implementation costs of a single or series of stock executions.
QSG’s expertise in both post trade analysis and equity research has led to
a number of new insights that have laid the groundwork for an accurate, new way
of forecasting equity trading costs. QSG’s pre-trade forecasts are now available
through a number of popular portfolio construction and risk management platforms.
Additionally, these forecasts are also available through a web-based analytical
tool.
A Bottom Up Execution Cost Forecast
QSG is the only vendor that matches back every tick in the context of an entire
position. T-Cost Pro™ isolates the ‘footprint’
created when large trades are parcelled into a series of smaller orders. Examining
each time-stamped execution from both an individual and cumulative perspective allows
for an in-depth forensic investigation into the source of trading costs.
Bridge The Gap Between Investment Decision & Execution
QSG has developed sophisticated stock selection models for many of the world’s
top equity managers. QSG’s pre-trade analytics are designed to support trading
as a natural extension of the stock selection process. QSG has translated this philosophy
into a unique information set that provides traders a competitive advantage by detailing
an individual stock's attractiveness to various types of investment managers. This
is a significant deficiency in the pre-trade analytical tools currently available
in the marketplace.
Integrated Trade Analysis
When combined with our post-trade analysis (T-Cost Pro™
— a patent pending TCA tool), our integrated platform finally provides clients
the chance to compute a dynamic feedback loop. Therefore bridging the gap between
investment decision and execution phases, allowing portfolio managers to align investment
decisions and trading strategies with dramatically increased confidence.
Intuitive visualization tools maximize users ability to identify the most challenging trades
Transparently displayed real numbers replace assumptions and confirm intuition
Proprietary style insights & the most recent relative performance improve your decision making process
Features
Customer driven execution schedules and impact/timing trade-off in response to
your demand for liquidity
An integrated approach to trading - helps to identify investment candidates as
well as select the most appropriate trading strategies
Unique Tick-based Forecast Methodology
Unlike simplistic linear-piecewise methods, QSG’s dynamic process avoids extrapolating
stale insights into the future. The most recent tick-based trading data is used
to forecast each stock’s execution cost.
Powerful Liquidity Metrics
QSG’s research is leveraged to determine the optimal trading strategy, which maximizes
your returns. Our pre-trade analyst utilizes measures that better relate to the
increased automation and trading velocity of today’s complex equity markets.
Daily Profile Update
QSG’s tick-based calculations are updated every business day. Timely updates of
complex factor-based models, stock rankings and covariance matrices ensure your
trading decisions utilizes the latest information.
Analyze Your Competition
A stock’s investment characteristics can change rapidly. These characteristics ultimately
determine the evolution of the stock’s performance and trading behavior. QSG’s style
models provide new insights into the investment strategies of your competition.
Independence
Independent “Best Execution” Analysis: No Conflicts
QSG is an independent consultant specializing in trading cost research and does
not engage in securities trading. In contrast to firms that offer transaction cost
research as an adjuct to the business of trading, our main goal is to improve the
execution results of our clients.
QSG will never be the counterparty in a trade we are analysing, nor do we have an
incentive to favor a particular broker or execution strategy. This neutrality makes
us the perfect partner in an era of increaed regulatory scrutiny and demands to
achieve ‘best execution.’
QSG’s commitment to research and development in trading analytics assures
that our services will evolve with the challenges of our institutional clients.