BestEx Research Announces Order Aggregation Functionality to Improve Execution Performance and Workflow for Institutional Traders

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Oct 03, 2024, 08:30 ET

STAMFORD, Conn., Oct. 3, 2024 /PRNewswire/ -- BestEx Research Group LLC, an independent provider of high-performance algorithmic execution and measurement solutions for equities and futures trading, today announced the launch of Order Aggregation functionality within its execution algorithms. Order aggregation increases the efficiency of algorithms' scheduling, order placement, and liquidity-seeking behavior by combining parent orders on the same symbol and side, which ultimately reduces clients' trading costs.

Execution of multiple parent orders for the same instrument–whether sent at the same time or different times–often results in higher trading costs due to faster than optimal execution speeds, suboptimal limit order placement, and missed block trading opportunities in fragmented markets. BestEx Research's Order Aggregation addresses this challenge by consolidating orders on the same side of the market, optimizing algorithm performance and reducing trading costs. Clients can opt in to this feature without altering their workflow, and fills will be allocated back to each parent order in real time–even though BestEx Research algorithms are trading them as a single block order.

Additionally, institutions managing orders from different portfolios arriving at various times can use this functionality to meet regulatory and compliance requirements, ensuring fair and equitable fills across all portfolios without the need to develop complex order aggregation capabilities within their Order Management System (OMS). BestEx Research's pro-rata fill allocation ensures that each parent order, even those belonging to different accounts, is fairly treated.

"We developed this functionality in direct response to a challenge faced by our clients, who experienced increased market impact from multiple orders for the same instrument when the orders were generated at different times. Order aggregation tackles this seamlessly for the customer with zero disruption to their workflow," said Nigam Saraiya, Chief Product Officer at BestEx Research. "Every element of our product design is intended to improve either trading costs or the workflow–or both–as in the case of order aggregation."

On BestEx Research's order aggregation functionality, Eugene Seo, Head of Equity Trading at Nordea Asset Management shared, "For us, order aggregation is an absolutely essential feature. Given the fragmentation of liquidity in the market and the need to minimize our impact as we achieve volume, it is necessary that multiple orders in the same security do not compete against each other but instead are aggregated and represented as a singular order in the market. This helps us reduce our signaling risk in the market and avoid a scenario where scheduled components of multiple algo orders compete with each other. Especially important for us given our large average order size is our reliance on conditional order types, achieving volume through larger and less predictable fills. Additionally, aggregation functionality ensures that volumes are distributed on a pro-rata basis across working orders so that our investment teams are being represented fairly. BestEx Research was eager and willing to understand our workflow at Nordea and quickly created a robust solution for our desk. The process has given us additional confidence that the BestEx Research team truly cares to address the needs of the buy-side desk."

Order Aggregation can be configured upon request to meet the specific needs of BestEx Research clients. Both the eligibility requirements for aggregation and the fill attribution process are customizable to suit different workflows and preferences. Sell-side firms utilizing BestEx Research's AMS can selectively offer this functionality to their buy-side clients, tailoring the criteria to meet each client's needs.

For detailed information about Order Aggregation, read the details in this article on the BestEx Research website

Order Aggregation is powered by BestEx Research's award-winning trading technology and supported by their multi-asset Algorithm Management System (AMS), offering clients transparency and control over their execution. For more information about the BestEx Research Algorithm Management System (AMS), visit bestexresearch.com.

About BestEx Research

BestEx Research Group LLC is a provider of sophisticated execution algorithms for equities and global futures aimed at reducing trading costs for buy-side managers. The firm's cloud-based Algorithm Management System (AMS) combines their execution algorithms with a user-friendly dashboard, transaction cost analysis, customization, and automation in the industry's first multi-asset, independent algorithmic execution platform. BestEx Research also offers sell-side firms a seamless, customizable trading solution for their clients with no coding required. For more information on BestEx Research's mission and products, or to request a product demo, please visit www.bestexresearch.com. Please follow BestEx Research on LinkedIn and Twitter.

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SOURCE BestEx Research