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.

 

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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.