Neonet partners with IFS LiquidMetrix to provide execution performance quality assurance
Neonet clients get access to independent Best Execution and Smart Order Routing performance verification by LiquidMetrix.
NEWS RELEASE: Stockholm, Sweden, October 18, 2011
Neonet, the independent execution services provider, today announced a partnership with
Intelligent Financial Systems (IFS), a London based research and market data analysis
company providing a range of historical and real time market data analysis solutions.
The companies have entered an agreement which calls for IFS LiquidMetrix to assist Neonet
with measuring and evaluating quality aspects of Neonet’s equity execution including Smart
Order Routing (SOR), and providing tools for creating Best Execution reports. Neonet plans
to incorporate the independent quality assurance provided by LiquidMetrix with its execution
services, including its newly launched offering tailored for sell-side clients.
Using the LiquidMetrix WorkStation, Neonet can analyze the performance of its trade flow on
individual or multiple trading venues with millisecond precision, an accuracy that very few
vendor services can provide, but is needed for performance measurement of today’s sophisticated
Smart Order Routing systems such as that in use by Neonet. The actual and potential price
improvements*) are calculated for each trade using order book depths and best bid and offer
reference prices. A full Transaction Cost Analysis (TCA) summary for the client orders is
available, and the system also provides summaries across all trading activity pinpointing
existing price improvements captured by the Neonet system, and potential optimizations. The
data set can be filtered and summarized in performance by client, order size and trading strategy.
Neonet’s CEO Joakim Wiklander commented: ”Our initiative to engage LiquidMetrix reflects
Neonet’s commitment to quality execution while addressing increased fragmentation, and our
reputation as one of the early adopters of SOR. Measuring execution quality is not an absolute
science; it always requires external benchmarking to be meaningful since you cannot rank
yourself based on your own data”.
IFS’ LiquidMetrix WorkStation product suite, which is used to monitor Neonet’s performance,
provides access to a multi-terabyte, consolidated, full-depth (Level 2) order book history
covering instruments traded in Europe on Primary Exchanges, MTFs and Dark Pools.
Sabine Toulson, Managing Director of IFS, commented: “We are pleased that we are able to help
Neonet analyze its trading performance using the LiquidMetrix WorkStation. Our service allows
the most technically advanced brokers such as Neonet to measure quantify and optimize their
execution performance in today’s fragmented equity markets.”
*) Price improvement is defined as the difference between the Neonet execution price and the
best quoted price at the time of execution.
About Intelligent Financial Systems
Intelligent Financial Systems (IFS) is a London based research and market data analysis
company. Since the implementation of MiFID in 2007, IFS have developed a suite of services
under the LiquidMetrix brand focused on transaction cost analysis, Best Execution
compliance and pre-trade cost prediction for Europe’s increasingly fragmented equity
markets. Since autumn 2009, IFS is offering these services via its LiquidMetrix WorkStation
terminal. These services operate using a proprietary multi-terabyte database of full depth
order book data covering major European equity Exchanges and MTFs.
For more information about LiquidMetrix visit www.liquidmetrix.com
Neonet is an execution service provider that offers professional market participants independent,
high-speed execution services based on advanced trading software solutions. Neonet’s services
include a comprehensive execution management system, advanced trading algorithms, smart order
routing, market data services and a trading desk operated by qualified execution specialists.
Neonet does not engage in proprietary trading or any other financial activity that could result
in a potential conflict of interest. Neonet serves clients in over 25 countries. Clients include
banks, brokerage firms, institutional investors, hedge funds and asset managers. Neonet Securities
is an Orc Group company. Orc Group is publicly traded on Nasdaq OMX Stockholm (SSE:ORC).
For further information, visit
Neonet: Joacim Wiklander, CEO, Tel. +46 (0) 8 506 478 35
Intelligent Financial Systems: Mark Ford, LiquidMetrix, Tel. +44 (0) 20 7379 7328, firstname.lastname@example.org
Orc Group: Christine Blinke, VP Marketing and Investor Relations, Tel. +46 739 01 02 01