Customized Solutions to get more of what you need and less of what you don’t
Thomson Reuters Tick History provides deep historical archives for analysis, back testing and optimization of high frequency strategies. A single source of data content, Tick History provides time and sales data at any point in time since 1996 across a wide range of asset classes and markets, both in terms of geography and instrument type.
We talk with Dennis Goett, Global Head Tick Solutions, about the top five reasons hedge fund managers rely on Thomson Reuters Tick History.
Q. Why is the data breadth and depth found in Tick History so important to a hedge fund?
A. Hedge funds are using Tick History from front to back; from idea generation to execution to profit and loss creation to compliance. Funds are using it at multiple points across the entire workflow so the data must be reliable and accurate. .
We are seeing C&E and FX are becoming more popular asset classes as firms look to diversify their trading universe and differentiate themselves. So having cross exchange, cross asset coverage, including both OTC and exchange traded instruments across 400+ exchanges, is a differentiator for Thomson Reuters.
Q. Recently Automated Trader applauded Tick History’s ease of use, and indicated it’s a key selling point. Why would a hedge fund care about ease of use?
A. Time is money. Fund managers are digging through data, searching for a strategy to generate alpha. They want to access data over different market periods to see how their strategies work. We make that process less onerous with an intuitive user interface, and data that’s delivered in a simple format, enabling the content to be integrated into complex event processing platforms or analytical software. This saves users time and effort they previously spent on clunky, outdated processes or multiple providers.
Q. You mentioned the value of using Tick History across the enterprise. Where are you seeing it deliver value?
A. In execution. Whether hedge funds buy algorithms from banks as a ready-made suite or build their own, they need to be tested for market slippage and validation. When funds do their after-market transaction cost analysis (TCA) they need to compare where their execution was at any particular point in time in the market. Hedge funds and their vendors look to us to ensure they’ve captured best-execution.
Q. What about Compliance and Regulation?
A. We also are seeing an increase in interest from Compliance professionals at hedge funds, as a result of stricter reporting guidelines and oversight. Information such as trade executions by a group or individuals allows the compliance function to help ensure operational due diligence through the monitoring of trading activity.
Q. There has been a surge in interest in Thomson Reuters Tick History with hedge funds. To what do you attribute this recent success?
A. Thomson Reuters offers customers flexibility. We conform the data and terms to meet their current needs, but scale incrementally with the customer as they build success, add strategies, open additional offices globally. It’s our scalability plus breadth and depth of data that makes us front-of-mind for hedge funds.
To learn more about how our unmatched depth and breadth of content, analytics and tools can help you outperform, contact our Hedge Fund team.
