Broadridge Financial Solutions has formed a strategic partnership with Level 3 historical market data and analytics provider BMLL Technologies, in a move that will embed sophisticated pre-trade analytics directly into Broadridge’s global sell-side Order Management System (OMS) and its Xilix Execution Management System (EMS) for buy-side firms in Japan. The collaboration aims to provide traders with actionable insights at the point of execution, enhancing their ability to make optimal trading decisions.
While Broadridge has existing pre-trade analytics capabilities, this partnership marks a significant evolution, with Broadridge integrating BMLL’s granular Level 3 data and analytics infrastructure to build its own tailored solutions.
Speaking to TradingTech Insight, Elliot Banks, Chief Product Officer at BMLL, clarifies the relationship. “How it works is that Broadridge is building on our Level 3 data and analytics to create its own analytics, which it then provides to its customers,” he explains. “This is a really good example of what we’ve been talking about a lot over the last 18 months or so: ‘buying to build’.”This ‘Buy AND Build’ approach allows Broadridge to bypass the significant undertaking of sourcing, curating, and cleaning vast historical datasets. “They can short-circuit all of that and go straight in,” Banks adds. “They have clean data that they can trust, in an environment that’s easy to use, so they can start straight away on the value-added analytics and insights and ignore the 80% of the ‘grunt’ work a quant might typically have to do before even getting started.”
The integrated capabilities will provide traders with predictions on execution time, market impact, participation rates, and spread costs, all within their existing workflows. Users will also have access to insights such as average daily volumes, real-time Average Volume At Time (AVAT), and Remaining Volume At Time (RVAT).
“A key advantage of the partnership is that Broadridge is putting these analytics right into the hands of its customers at the point of execution,” states Paul Humphrey, CEO of BMLL. “That proximity to the client is really key.”
Although BMLL’s Level 3 data is purely historical, its application is firmly in the pre-trade domain, explains Humphrey. “We have customers demanding our data before the market opens,” he notes. “We’re turning what was typically the ‘exhaust’ of the real-time data industry into the best quality pre-day, pre-trade data available. And how that data is then intelligently combined with proprietary data, to give a completely unique set of results, is what really provides added value for the client.”
While Broadridge’s initial rollout for Xilix, its buy-side EMS, is focused on Japan, the integration with Broadridge’s global sell-side OMS suggests a wider application. Humphrey points out that BMLL’s ambition extends across the financial markets ecosystem. “Although we’re talking about an O/EMS provider here with Broadridge, clearly we can do this with other solutions, such as surveillance or TCA providers,” he concluded. “This is where we want to be and how we want to be positioned, working with partners, who can build the best solutions for their clients. It’s fantastic.”
“Working with BMLL, we are optimising trading and delivering transformation by integrating actionable insights and robust analytics directly into the workflows of both global sell-side and Japanese buy-side clients,” comments Brian Pomraning, Chief Product Officer of Broadridge Trading and Connectivity Solutions. “We are providing traders with unprecedented pre-trade insights to optimise their trading decisions at the point of execution. By seamlessly integrating BMLL’s high-quality data and analytics, we are empowering our clients to achieve better outcomes—enhancing trading performance, managing risk, and meeting their own clients’ demands.”
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