TORA has launched its artificial intelligence (AI)-powered AlgoWheel in an effort to help firms create scalable, systematic best execution processes.
TORA’s AlgoWheel is a quantitative execution strategy tool that uses AI technology to automate low-touch order execution or provide real-time market intelligence for orders needing human intervention.
This solution provides a feedback loop that uses historical and real-time order-level execution information to identify the optimal broker-algo and inform the trading decision making process.
Historical trade execution information is captured by TORA’s post-trade transaction cost analysis (TCA) solution while TORA’s AI-driven pre-trade TCA tool is used to evaluate each order.
This pre-trade TCA platform is built upon a convolutional neural network that uses machine learning to increase its estimation precision over time.
Low touch orders may be automatically executed using the recommended broker algo combination by TORA’s strategy server to create scalable trading operation.
The release of the tool is in response to Article 27 of the second Markets in Financial Instruments Directive (MiFID II), which raises the minimum required benchmark for best execution.
Firms are mandated to demonstrate they have taken ‘all sufficient steps’ to achieve best execution.
Commenting on the development, Chris Jenkins, managing director at TORA, said: “To remain competitive in today’s market, traders need to focus their attention where they can add the most value. To do that, they need an automated trading solution they trust can achieve best execution for the bulk of their orders.”
He added: “We’re confident in our ability to deliver that peace of mind to clients and are excited to include this as part of our best execution solution.”
