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