Liquidity bridging is the heart and soul of a brokerage. It’s the most central piece of the ecosystem that ensures orders are being executed just the way they should.
However, a modern liquidity bridge solution, such as Trade Processor, is much more than that. It offers risk management and data analytics, and it allows brokers to set up the system so it works best for the business’ purposes.
Real-time data streaming, custom alerts, detailed dashboards – all that can (and should) be available to brokerages within the solutions that they already have.
Trade Processor has a lot to offer, and today we will discuss how you can run data analytics with just your liquidity bridge software.
Trade Processor’s monitoring and analytics tools
There are several ways Trade Processor provides advanced data monitoring and analytics.
Built-in reports help brokerages collect all relevant data for compliance and streamline their relationship with local regulators. There are four built-in reports with a wealth of data that brokers can view at any time to evaluate their performance.
- Summary Page: An overview of trading servers and statistics.
- Trading History: A detailed report on all closed platform positions.
- Positions Page: A report on all open positions by symbol, platform, or pool.
- Exposure Page: An exposure analysis in volumes or profits updated in real time.
A MAP FinTech integration with Trade Processor takes regulatory reporting one step further. The seamless integration provides access to swift EMIR, MiFIR, ASIC, and Best Execution reports.
Key metrics for brokers to monitor
Four areas need to be monitored for brokers to ensure healthy brokerage performance.
- Order execution quality. Track slippage, fills, and the speed of execution.
- Liquidity provider performance. Is the pricing accurate? What are the quote rejection rates? What about latency?
- Infrastructure health. The uptime and failover events need to be monitored at all times.
- Trader behaviour patterns. Watch out for current trends, volume spikes, and risk tolerance.
Keeping up with data analytics across those four areas will help brokers maintain excellent performance and improve their strategic decision-making.
How analytics support smarter decision-making
If you’re wondering how data analytics helps brokers make smarter decisions, here are the main points:
- Detect abnormalities (good or bad) to adjust your settings in time to make the most of the market situation.
- Use data-based insights to refine pricing strategies.
- Spot liquidity providers that over- or underperform and reconsider partnerships when necessary.
- Segment clients better based on how they trade, not on your assumptions.
- Optimise and fine-tune risk strategies and routing rules for better performance.
Overall, access to the historical performance of the business allows brokers to see the bigger picture and help create future-proof strategies and smart goals.
Data Visualisation for Better Oversight
How data is presented to us matters as much as the data itself. You can’t expect fast and accurate decision-making on important issues if the reports you get are impossible to comprehend.
In Trade Processor, the data pulled from the system is presented in an intuitive, user-friendly format with dashboards and charts. A quick, high-level overview is enough to figure out what is going on, and both technical and non-technical team members can work with the reports on their screens.
Improving client services through data monitoring
It’s not only the business performance that improves once data analytics gets involved.
Client satisfaction is one of the top things that improves once brokers start looking into the data and implementing changes to cater to their target audience.
- When you monitor performance 24/7, you spot issues and glitches instantly and fix them before they become a disaster.
- Issue prevention is one of the top benefits of working with data. Brokers can anticipate and prevent all kinds of problems, for instance, execution delays, without their traders noticing anything.
- Data analysis helps create better, more tailored offers and personalised conditions that boost broker loyalty and increase broker volumes.
What are the common mistakes when using monitoring tools?
Monitoring and reviewing data regularly is a huge step in the right direction. Yet, that doesn’t guarantee success on its own.
Here are a few common mistakes that brokers make when working with data.
- Ignoring pre-set alerts
- Not setting thresholds or filters
- Staying at the surface level
- Not digging to the root cause
- Ignoring access permissions
Doing any or all of the above is like having a ticking bomb in your brokerage. Everything is fine until it isn’t.
Setting up and maintaining your data analytics and monitoring tools does take time, but it always offsets the consequences of negligence. One disaster is all it takes for the brokerage to shut down permanently.
Make data work for your firm
Monitoring and data analysis are often viewed as insurance. Nobody wants to think about possible issues that haven’t happened yet, and adding another task on your to-do list can be daunting.
It doesn’t have to be painful and time-consuming, though. With solutions like Trade Processor, brokers can do more with the tools they already have and spend minimal time setting everything up to get regular, accurate, and helpful data.
If you’re not sure where to start or want to double-check that you’re making the most of the instruments at hand, send us an email at sales@t4b.com. We’d be happy to consult you to make sure your business runs smoothly and you always have all the data you need for knowledgeable decision-making and excellent performance.
