Fixed Income

Order Lifecycle Visibility to Improve Execution and Reduce Risk

Fixed Income markets are now more complex and competitive than ever. Old school voice trading is giving way to more automated price generation, price discovery and trade execution processes.

Problem Overview

Price makers and price takers alike often don’t have complete and unbiased information to help them assess their trading performance as it relates to network performance, counterparty/liquidity venue behavior and pricing/execution algo efficiency.

Without adequate visibility into the order lifecycle, business performance can suffer along several dimensions:

  • Missed opportunities and loss of flow.
  • Increased market risk from missed prices, hung orders, and losses.
  • Increased operational risk from system degradation, outages, and inconsistency.

As Fixed Income markets continue to evolve rapidly, a platform arms race is emerging and access to real-time order, execution, and performance information across parties has become an imperative.

Solution Overview

Corvil empowers price makers and price takers with a correlated view into trading activity with counterparties, trader and client experience, and underlying technology performance to improve execution and reduce risk. Corvil delivers real-time visibility into the details and lifecycle of every order and transaction to enable optimization of business performance through better servicing of clients, trade strategy adjustment, and technology optimization.

Corvil provides the transparency and critical information that many EOMS and trading systems lack in terms of quoting, pricing data completeness and currency, and network and application insight and responsiveness. By providing an independent, integrated view of network and application performance, client behavior, and pricing and quoting efficiency, Corvil enables businesses to quickly identify, diagnose, and action performance challenges to avoid losses and optimize risk/reward trade-offs.

  • Track and Optimize Quoting and Pricing Performance
  • Monitor Market Data Quality and Completeness
  • Assure Trading Platform Performance with Complete Visibility
  • Oversee Interdealer and Counterparty Performance
  • Demonstrate regulatory compliance with complete trading record

Corvil’s Fixed Income Analytics provide the transparency and real-time insight to better enable participants to compete in an increasingly sophisticated ecosystem. Further, Corvil arms participants with the capabilities they are likely to require as the Fixed Income markets continue to evolve.

Outcomes

  • Improved responsiveness to desk or customer order inquiries
  • Increased knowledge of customer intent, experience, and order behavior
  • Reduced leg risk and hung orders
  • Insight to optimize technology components, assure vendor performance, adjust pricing
  • Lower regulatory tail-risk with trusted data to defend audit
  • Reduced operational risk from faster resolution of technology issues

Customer Success

"With electronification and market-making renaissances underway across bond markets, firms that effectively leverage technology to gain insight from trade flows and optimize their system performance will gain better access to liquidity and will be appropriately positioned to satisfy future regulatory transparency requirements."

– ANTHONY J. PERROTTA, CEOTABB GROUP

Trade Performance Analytics

Fill Rate - Order tracking state is used to monitor the success or failure of orders through the fill-rate calculation - the percentage of the request volume that was filled.

Tick To Order - Calculates the algorithm response latency – the time from receipt of the triggering tick to the transmission of the order.

Order To Tick - Calculates the venue response latency – the time from transmission of an order to receipt of tick update on the venue feed reflecting the trade.

Order Response - Calculates the venue order response latency – the time from transmission of an order to receipt of acknowledgment of the order from the venue.

Microburst Analysis - Calculates the volume of a specified metric for short-timescales, e.g. the number of messages received in 1ms.

Gap Detection - Track the sequence numbers of all multicast market data feeds, and use this tracking to report and alert on any gaps.

Relative Latency - Calculates the relative latency between two measured events with time-stamps from a common time reference.

Bandwidth Protection - Calculates an estimate of the amount of bandwidth need to meet a quality of service objective for a given traffic load e.g. a market data feed.