A-Team Insight Blogs

Refinitiv Partners Quod Financial to Add Sell-Side OMS to Trading Solutions

Refinitiv has plugged a gap in its sell-side trading line-up by making an agreement with Quod Financial to offer a multi-asset, sell-side OMS powered by Quod and using Refinitiv’s data feed solutions and connectivity to the sell-side community. Beyond the OMS, the companies have plans to build additional data-driven, automated trading technologies incorporating machine learning to support decision making.

While Refinitiv is a big player in the buy-side with the REDI EMS and AlphaDesk OMS, it has lacked sell-side solutions in this space. Rather than building in-house, it evaluated numerous local and global options before deciding to work with Quod on the basis of its focus on data automation and innovation.

Ian Mawdsley, head of equity trading proposition at Refinitiv, says: “The sell-side is ripe for disruption with many incumbent providers failing to shift from legacy technology solutions that are no longer cost effective or fit for purpose within current market conditions. In seeking to promote our data, desktop and connectivity solutions, Refinitiv has found the perfect strategic partner in Quod Financial.”

The sell-side OMS solution is fully managed and provides front to middle office functionality including data, FIX and execution networks. It features include pre-trade risk, order routing and order management, algorithmic trading, smart order routing, trade reporting, and analytics.

Quod Financial was founded in 2004 and was part of Reuters until 2008, when it was bought out as a smart order routing and low-touch algo trading platform for Tier 1 and Tier 2 banks. Since then, it has focused on building data-driven, automated trading technology based on its Adaptive Execution Platform and supporting FX, equities and derivatives.

Medan Gabbay, chief revenue officer at Quod Financial, explains: “Most recently, we have enriched workflows around the OMS, evolving beyond managing orders to add insight for traders by using machine learning algos for activities such as pre-trade analytics.”

It is this type of work that Quod will continue to advance with Refinitiv. Early solutions due to be released over the course of 2021 include: parameter optimisation based on machine learning recommendations for system configuration in real time; real-time data analytics for micro market events; and predictive failure analytics coupled to system self-scaling depending on market conditions.

Meantime, the OMS is already being used by a handful of Tier 2 banks and brokers, some migrating from other vendor products. Gabbay comments: “There is never a good time to change an OMS, it is painful and expensive, but many firms are considering whether they can move to a solution that brings them more value. We differentiate in providing low-touch automation, machine learning and real-time analytics.”

Related content

WEBINAR

Recorded Webinar: Market data in the cloud

The Covid-19 pandemic has created new demand for financial information delivery infrastructure to accommodate the many trading and support personnel now working from home (WFH). For many firms, new cloud delivery and hosting capabilities offer a viable solution for supporting these staff, accelerating demand for cloud-based market data delivery infrastructures. This development has thrown up...

BLOG

SteelEye Teams with txtsmarter for Messaging Data Capture

Financial compliance and analytics specialist SteelEye is adding txtsmarter’s messaging capture and archiving capability to its communications surveillance solution, giving clients access to native messaging data sourced from Android SMS/MMS, WhatsApp and – uniquely – Apple iMessage, in real time. The combined solution adds mobile phone messages to the range of electronic communications that users...

EVENT

Data Management Summit Virtual

The Data Management Summit Virtual will bring together the global data management community to share lessons learned, best practice guidance and latest innovations to emerge from the recent crisis. Join us online to hear from leading data practitioners and innovators from the UK, US and Europe who will share insights into how they are pushing the boundaries with data to deliver value with flexible but resilient data driven strategies.

GUIDE

Best Practice Client Onboarding

Client onboarding is central to the success of banks, yet it continues to present challenges and the benefits of getting it right are difficult to achieve. The challenges arise from siloed systems, manual processes and poor entity data quality. The potential benefits of successful implementation include excellent client experience, improved client acquisition and loyalty, new business opportunities, reductions in costs, competitive advantage, and confidence in compliance.