Transaction Cost Analysis demo

What the demo shows

Explains trading costs in equities, bonds and FX for buy-side traders and best-ex committees

One order replayed is the screen: every fill and rejected request on the price chart, the cost stacked beside it in basis points, the period's broker, algorithm and venue ranks on the left, and the agents' conversation and the decision on the right. Eight agents do the work overnight. The Data agent gathers fills, routes, FX and RFQ logs and ties the counts; the Benchmark agent picks a fair benchmark per order and says why, building a fair bond price when the evaluated one is stale; the Cost agent splits the cost into delay, spread, timing, impact and fees; the Explanation agent writes why it happened in plain words, reading exchange notices in their own language, and asks the trader when nothing explains it; the Checker agent recomputes every figure on a different model family; the Anomaly agent watches each dealer's reject rate and hold time and reads its disclosure; the Ranking agent ranks with confidence labels; the Report agent builds the reports and the examiner pack. Traders propose, the head of trading approves, the committee ratifies.

Transcript

1. 0:00Transaction Cost Analysis explains trading costs in equities, bonds and FX for buy-side desks.
2. 0:10Reports say what a trade cost, rarely why, yet one basis point is $41 million a quarter.
3. 0:19Overnight, agents costed 652 orders and explained 22 of 23 outliers.
4. 0:28Sam replays a 50 million euro order, three rejections in just over a second.
5. 0:36The cost stack splits 2.1 basis points five ways.
6. 0:42One agent picked the benchmark.
7. 0:44Another recomputed every figure.
8. 0:48Every figure is cited down to the millisecond log.
9. 0:54The anomaly agent found why.
10. 0:56The bank widened its last look window.
11. 1:01Lucas proposed review. Sam approves with a reason code, then accepts 19 explanations at once.
12. 1:09Every decision is signed and logged in one examiner pack.
13. 1:15The result, an estimated $244,000 caught in 12 days, and Friday explained by Monday.
14. 1:25Built on Botminds: agents, data, screens, and governance on one platform.

Transcribed from the film’s narration. Captions are on the player.