After establishing its position on the buy side as a proven provider of decision support and trading analytics, London-based OTAS Technologies announced in late 2014 that it intended to move into the sell-side space.
The strategy has apparently paid off as OTAS fought off fierce competition to secure the title as the best analytics provider to the sell side.
The role of analytics is both a desired and misunderstood one within the capital markets—while no-one wants to miss out on gathering and harnessing any data, many have little idea how to fully utilize the information they do have access to. It’s an issue of contextualization, as traders demand a seamless experience in which they’re receiving the right information at the right time and in the right context.
OTAS has positioned itself to address this demand with its suite of analytics solutions to provide live and intra-day advanced trade analysis and decision support powered by artificial intelligence and big-data analysis. The OTAS Core platform provides decision-support functionality; OTAS TradeShaper delivers pre-trade and “in-trade” analytics to traders; OTAS Base is an application programming interface (API) and visualization toolkit; and OTAS Views allows traders to create user-customizable views and analytics to help them make more judicious trading-related decisions. Users are able to select any combination from over 200 unique factors that can then be used to filter, rank and score a stock, as well as create an unlimited range of custom views.
By inputting orders manually or automatically through an order management system (OMS), users are able to factor in expected share price moves over the life of an order, the likely impact of the order on the share price, the level of risk aversion, and any other existing market insights. Alerts are sent to users to provide real-time support to identify whether to accelerate or slow down a trade in real time, based on statistically-backed information, pinpointing where risk lies on order pads or across trading desks at any given point.
In April, OTAS unveiled Lingo for Microstructure, a new extension of its existing natural language reporting technology. The service provides intra-day reports and analysis of stock activities covering the previous two years, available for both OTAS users as well as users of FlexTrade’s FlexTrader execution management system (EMS). Lingo also integrates with the Symphony messaging system, to provide traders with contextual analytics overlaying traditional transaction-cost analysis (TCA) data in a universal language to facilitate both pre- and post-trade decision making.