Equity automation improves performance and strengthens best execution

Equity traders manage thousands of orders from multiple portfolio managers, in diverse markets, with distinct instructions amid varying market conditions, while striving to achieve best execution. Trading desks use an Execution Management System (EMS) to view market intelligence and access trading destinations to execute their orders. Now, more firms are looking to automated trading within their EMSs to optimize execution, manage transaction costs, and reduce performance setbacks from trading delays. The known benefits of automation for operational efficiency, like systematically managing and freeing up a trader’s blotter, are widely acknowledged. However, the impact of automation on trade execution performance has been underexplored.

In this report we learn more about how U.S. and European equity trading desks that use Bloomberg’s Rule Builder (RBLD) show performance improvement in both automated and manual orders.