Clearpool, a New York based provider of electronic trading solutions, is building out technology designed to democratise electronic trading through the provision of transparency, trust and control.
The company’s flagship product is Algorithmic Management System (AMS), which allows all brokers, large and small, to access algorithms that can help them compete on a level playing field and take control of performance and cost.
Joe Wald, a founder and CEO at Clearpool, explains: “In 2014, Clearpool decided to fill the gap left by big firms competing with smaller firms for the same business, but having the A suite algos while the smaller firms had the B suite algos and were at a disadvantage in the market. Smaller firms had little control of where orders were routed and how they were handled, and this meant inferior execution quality.”
AMS fills the gap and provides a level playing field by offering brokers full transparency and control from strategy configuration to order execution, as well as a customisable suite of algos that can be tuned to specific strategies. Analytics offer actionable insights to optimise strategies. Wald comments: “Our goal is to help each of our clients have a unique platform.”
The AMS platform has been through a few iterations and is now at version 3.0. It is cloud based, hosted by Clearpool and includes a visualisation element allowing users to see performance in real time. Other elements include charts and dashboards to build algo strategies.
Wald says the platform is built on a very modern technology stack and based on the expertise of the company’s quant and market structure teams. It is integrated with most order management systems (OMS), although more can be added, and it can be shared between brokers and their clients, putting buy-side and sell-side operations on the same page. Clients are based in the US, Canada, Asia and Europe, with the platform initially supporting US and Canadian equities trading, although the company acknowledges the need for greater globalisation and plans to add European equities next.
Clearpool also offers Venue Analysis, a forensic tool designed to evaluate venues, validate routing protocols and demonstrate best execution; and Execution Services that are provided by an independent broker-dealer within the Clearpool Group, although clients can use the Clearpool AMS and Venue Analysis technologies without recourse to its execution services.