TORA has launched an artificial intelligence-powered algo wheel for buy-side traders to comply with MiFID II’s best execution requirements.
Article 27 of MiFID II raised the minimum required benchmark for best execution, with firms having to demonstrate they have taken all sufficient steps to achieve best execution.
Broker randomisation tools, better known as algo wheels, burst onto the scene in 2017 promising to help the buy-side assess, monitor and justify algorithm and broker choices to regulators.
TORA follows FlexTrade and ITG who released their own algo wheels for best execution in 2017.
“To remain competitive in today’s market, traders need to focus their attention where they can add the most value,” said Chris Jenkins, managing director at TORA.
“To do that, they need an automated trading solution they trust can achieve best execution for the bulk of their orders. We’re confident in our ability to deliver that peace of mind to clients and are excited to include this as part of our best execution solution.”
TORA said its AlgoWheel uses advanced AI technology to automate low-touch order execution or provide real-time market intelligence for orders needing human intervention.
This solution provides a feedback loop that uses historical and real-time order-level execution information to identify the optimal broker-algo and inform the trading decision making process.