What we offer

Trade Data Analysis

Trading Hub provides trade data analytics to the financial services industry; our clients include international banks, asset managers, individual traders and regulatory institutions.

Since inception in 2010, we have evaluated a huge quantity of detailed trade data. We have developed a methodology to evaluate this trade data and precisely analyse the performance and behaviour of individual traders.

Performance Metrics

These methodologies comprise a set of unique metrics and analytic processes that enable our clients to: (i) objectively assess and improve the performance of their traders or (ii) identify trader actions that may constitute market abuse or rogue trading.

Financial Crime

We provide state-of-the-art, metrics-based systems to identify, investigate and report market abuse and unauthorised (rogue) trading activity. These products are called the Market Abuse Surveillance Tool (MAST) and the Rogue Trader Metrics System (RTMS). Both systems are used by financial institutions of all kinds and regulators to successfully identify and combat trader and portfolio manager malfeasance.

Simulation Platform

We also offer a trading simulation platform that uses real time data, imposes trading discipline and facilitates assessment of each trading action. This platform is available to clients (including corporates and educational establishments) to enable them to analyse the performance of traders, interns, students and/or new joiners in a realistic and disciplined market based environment.

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Market Abuse

We have developed a system to identify, investigate and report on market abuse activity.

This product is called the Market Abuse Surveillance Tool (MAST) and it has been used to identify hundreds of cases of market abuse and insider dealing. MAST clients include financial institutions and financial markets regulators.

Proven Resource

MAST is a proven resource; it has been used to analyse trading data relating to over 1.5 billion transactions generated across five million trading accounts.

MAST can process global enterprise levels of data accurately and efficiently and can assist customers to meet their regulatory and supervisory requirements and obligations (for example ESMA/2012/122 – Guideline 6).

MAST identifies market abuse using trader metrics which highlight and investigate trader outperformance (where, for example a trader demonstrates an ability to capture multiple market shocks or a propensity to avoid losses or capture outsized profits using small amounts of risk).

Data

MAST is capable of ingesting a variety of trade reports ranging from daily aggregated trade data to fill-by-fill intra-day reports. MAST is capable of identifying suspicious transactions even when offsetting non-reported legs are not included in the data analysed.

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Rogue Traders

We have developed a metrics based system to identify, investigate and report unauthorised trading activity. This product is called the Rogue Trader Metrics System (RTMS).

RTMS identifies traders who are hiding or obscuring risk, P&L and/or otherwise engaging in unauthorised trading activity irrespective of asset class, instrument type or trading venue. RTMS can process global enterprise levels of data accurately and efficiently.

Confidence Level

RTMS uses a red flag system to indicate incidences of potential breach and asserts a level of confidence that is based upon its proprietary scoring method. This method provides clients with clear priority based grounds for further investigation.

Case Management

RTMS includes an integrated case management system that enables client risk, compliance and audit functions to investigate potential breaches, document follow up actions and generate audit reports.

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Trader & PM Profiling

Our metrics and analytical processes can be applied to trader data allowing clients to perform a quantitative assessment of trader performance.

Performance Evaluation

The Trader Profiling product allows clients to evaluate individual trader performance, identify trader strengths and weaknesses and conduct a meaningful and data supported comparison between a trader and his or her peer group.

Feedback based performance improvement

Trading is a skill-based activity acquired through thousands of hours of purposeful practice. However, practice without feedback tends towards a closed system resulting in only incremental improvement and an over reliance on P&L as a performance metric.

Metrics based approach

The trader profiling product uses captured trading data to perform a comprehensive analysis and quantitative assessment of a trader using unique metrics.

The outputs from this process provide a detailed assessment of a trader’s overall approach, performance and trading style, identify and demonstrate any observed limiting behaviours and model likely performance outcomes that should result if the trader were to adjust or modify their current approach and trading style.

These outputs are reduced into (per trader) Performance Analysis presentations that provide the analysis and detail necessary for supervisors and desk heads to develop and understand their traders and to optimise performance.

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Learning & Development

We have developed a training programme to improve trading skills. The programme consists of a series of components shown in the chart below. Programme organisers can structure course using any combination of the components listed.

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Participants

Intercompany Summer interns competition (running June-July each year)
This is in a competition format allowing recruiting institutions to evaluate their interns and compare their performance with interns from other financial institutions (a daily leader board email is despatched to management).

Intercompany Graduate trainees trading competition (running Jan-Feb each year)
This is in a competition format allowing institutions to evaluate their graduate trainees identify and compare their performance with trainees from other institutions (a daily leader board email is despatched to management).

Bespoke training for more experienced traders
This course allows institutions to review and analyse trader performance, identify limiting behaviour and weaknesses in approach. It is often combined with the 1-2-1 session module to discuss and resolve issues.

Online Videos

Participants have access to our suite of online videos which cover the following topics:

  • Use of our trading simulator
  • Introduction to trading
  • Behavioural finance
  • Trader and Portfolio Manager performance profiling

Trading Simulator

Our trading simulator has been designed to create as realistic experience as possible. Key features include:

  • Real assets
  • Live prices
  • Realistic VaR based risk management
  • Web based / No software installation required
  • Available 24/7

Accompanying Textbooks

Our programmes include access to our 120 page textbook: Financial Markets Trading written by experienced traders. This textbook provides an overview of the financial markets from a trader’s perspective and explains financial terminology, essential concepts and basic financial calculations.

Online Exam

The training programme includes an optional online exam module which tests participant’s knowledge of financial terminology, essential concepts and basic financial calculations contained in our textbook. The exam lasts 30 minutes.

Results Packs

The calculated metrics are combined into individual results packs (one for each participant). The packs are twenty pages long and assess trading performance across more than 40 metrics.

Heat-Maps

Course organisers are provided with a heat-map comparison showing the performance of all participants across the key course metrics.

1-2-1 Sessions

Participants can arrange one to one performance analysis and trader coaching sessions at an additional cost. Please contact us for more information.

 

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