Bowmoor Capital, a London-based investment firm, and SummerHaven Investment Management, a Connecticut investment firm, have both integrated Trading Technologies' futures transaction cost analysis (TCA) platform, a tool designed to deliver insight into trade performance and execution efficiency.

According to Trading Technologies, the two firms have implemented TT's Futures TCA tool to inform their algorithmic strategies and ensure clients receive optimal execution.

Bridging Data Gap in Futures Execution

The tool, which went live last year, leverages a vast pool of anonymized, microsecond-level futures trade data, allowing users to customize analytics that reflect their specific strategies.

“It's great to see Bowmoor and SummerHaven applying these important analytical tools to their highly sophisticated trading and algo strategies, as well as to report to their clients how they are keeping costs low to maximize their returns,” said Peter Weiler, the EVP Managing Director, Data & Analytics at TT.

While equities have long benefited from detailed post-trade analysis, futures markets have lagged in terms of transparency and benchmarking. TT's Futures TCA aims to close that gap by offering depth-of-market visibility and empirical data analysis capabilities that firms like SummerHaven see as vital.

Product Built on Acquisition Momentum

TT Futures TCA is part of the company's growing Data and analytics business, which was strengthened by the 2023 acquisition of Abel Noser Solutions.

That acquisition laid the groundwork for other products like the TT Broker Scorecard, which ranks equity brokers based on liquidity and execution quality. TT reportedly plans to expand the scorecard to futures later this year.

Enhancements are reportedly in the pipeline. In the second quarter, the tool will include futures pre-trade cost estimates. These will draw on historical data to model execution costs under varying market conditions, adjusting for contract size, instrument type, and volatility.

In June last year, Trading Technologies debuted two new products: TT Futures TCA for transaction cost analysis (TCA) in futures trading and TT Trade Surveillance for monitoring trading activities across multiple asset classes.

“We're able to combine [our data] with Abel Noser's extensive TCA data and custom reporting that has been an essential tool in other asset classes, and produce what is without question the most comprehensive TCA solution for futures,” said Weiler in a report by FinanceMagnates.com.

Dubbed TT Futures TCA, the tool combines the firm's repository of anonymized futures trading data with metrics and analytics, aiming to provide a comprehensive tool for analyzing and optimizing futures trading strategies.