FlexTrade and Kensho are combining artificial intelligence and analytics for best execution.
FlexTrade’s EMS and Kensho’s pre-trade analytics solution results in a detailed, real-time event feed to assist a trader’s decision-making process when executing a trade.
Kensho’s event feed is expected to help traders fulfill best execution requirements under European regulation MiFID II, which calls for audit trails of execution decisions made in the best interests of investors.
The way it works is that Kensho’ captures events to surface company-specific key developments, such as product launches, mergers and acquisitions or corporate announcements.
There’s also a “Smart Connection” feature, which uses artificial intelligence to connect developments between tickers, surfacing second-order relationships and cases when another company’s news will likely impact the company the trader is analyzing.
And Kensho creates an evolving timeline of precedents, which means traders can analyse the impact of similar historical events to gain an understanding of how the market may react.
“This integration brings historical comparative analysis into the real world by comparing like-for-like days rather than just the order characteristics,” said Andy Mahoney, head of Sales at FlexTrade UK, in a statement.
Daniel Nadler, CEO & founder of Kensho, added that the goal of “actionable intelligence” in finance and trading is achieved through an “ever-expanding knowledge graph of the world that leverages artificial intelligence to power the insight gained from a complete picture of the events that impact companies.”