Real-Time Pre-Trade Model
US & Global Real-Time Pre-Trade model provides investors with trading cost and timing risk estimates. This is a broker-dealer and algorithmic neutral market impact model that assists traders in evaluating the different trading algorithms as well as corresponding cost estimate for the various strategies. The model assists funds in determining the most appropriate best execution strategy given the specific investment objectives of the manager.
The pre-trade model includes an Optimizer to balance the trade-off between cost and risk, and provide investors with optimal slicing strategies for both single security and trading baskets. This model is a multi-day solution and allows funds to incorporate their own proprietary data (such as volatility, liquidity, and alpha expectations).
The model is run from the client’s own desktop by incorporating a data feed such as Bloomberg, Reuters, Factset, etc., in conjunction with our KRG market impact estimates. The model does not interact with any broker-dealer or vendor. Thus preserving client’s all proprietary information.
Our model additionally provides a real-time cost estimates based on actual market conditions (including volatility, volumes, and aggregated imbalance). The model provides investors with current point in time costs, as well as projected completion costs.
Cost Curves - provide investors with the estimated trading cost for various order sizes and trading strategies. This allows traders to evaluate various trading strategies and allows portfolio managers to incorporate costs into security selection, portfolio construction, and capacity planning. Costs curves are available across all the global regions.
Our pre-trade model is a global model across all regions (North America, Developed and Emerging Europe, Developed and Emerging Asia, Latin America, and Frontier countries) and multi-asset classes.
Who Intended for:
Funds of Funds
What differentiates KRG from its competitors:
100% transparent, unbiased, broker neutral model. There are over two dozen papers and three books published on the models and modeling methodology.
We do not employ black-box model. We provide all the results, clients can verify calculation results.
The analysis is run on the client desktop. Clients do not log in to any API or IP address.
The model allows funds to incorporate their own proprietary data (such as volatility, liquidity, and alpha expectations).