Collaboration Between KCx and BMLL Accelerates Launch of Novel Trading Platform
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Kepler Cheuvreux, a leading European investment bank, is revolutionising its equities trading system with the introduction of KCx Omni, an advanced event-driven system. The first phase of this project is the implementation of KCx Spark, a new smart order router, which is set to improve execution efficiency for both buy-side and sell-side clients.
The development of KCx Spark has been significantly accelerated by the use of historical Level 3 data from BMLL, a company that specialises in providing curated, easy-to-use, harmonized data for firms like Kepler. This granular, harmonized data offers insights into the trading intentions of all market participants, enabling KCx Spark to intelligently access the right liquidity across fragmented European venues for better execution quality.
The use of BMLL’s Level 3 data has several benefits for KCx Spark. It allows for precisely timing and targeting specific liquidity pools by understanding participant behaviours and order flow patterns. It also supports sophisticated market structure research and algorithm back-testing, as the raw exchange data is normalized globally. Furthermore, it delivers smarter routing decisions that improve execution outcomes amidst varying venue characteristics and liquidity fragmentation.
The new KCx Spark smart order router, now live, features a new dark-order placement model powered by BMLL data. This model is reported to be much faster, allowing Kepler to tap into more liquidity and choose the optimal venue for each strategy.
BMLL collects raw exchange data directly from trading venues and presents it in a globally harmonized and normalized format. This data serves as a critical input for building an event-driven equities trading system like KCx Omni, with KCx Spark as the first implementation phase smart order router.
The strong relationship between BMLL and Kepler Cheuvreux, established since 2022, is evident in Kepler's joining of BMLL's products advisory board. This partnership allows Kepler to guide the direction of BMLL's data, ensuring it remains relevant and beneficial for Kepler's needs.
Moreover, BMLL provides access to the BMLL Data Lab, a cloud-based Python environment containing a library of custom-built APIs for large-scale market structure research and algorithm back-testing. This resource further enhances Kepler's ability to innovate and adapt in the rapidly changing world of equities trading.
Paul Humphrey, chief executive of BMLL, described their approach as a new paradigm for supplying market data, democratising data ownership, and allowing firms to differentiate themselves on what they do with the data.
Kepler's market share has risen significantly this year, and the bank is steadily expanding its KCx Omni project while staying agile with new models and workflows. The execution experience, including information at the point of execution, is a major focus for buy side, sell side, and exchanges, according to Robert Miller, head of market structure & liquidity solutions at Kepler Cheuvreux.
With BMLL handling data storage and classifications, the complexity and cost of maintaining infrastructure for KCx are reduced, allowing Kepler's brilliant people to spend more time on innovation rather than data crunching.
As a result, Kepler continues to win new business and is on the radar of many buy-side firms. The bank's dynamic approach, enabled by partners like BMLL, positions it well for success in the competitive world of equities trading.
[1] Kepler Cheuvreux press release, dated [insert date] [2] BMLL press release, dated [insert date]
- The implementation of KCx Spark, a new smart order router, in Kepler Cheuvreux's equities trading system is facilitated by the use of historical Level 3 data from BMLL, as this data offers insights into trading intentions, enabling smarter routing decisions and improving execution quality.
- The use of BMLL's Level 3 data allows for precisely timing and targeting specific liquidity pools, supports sophisticated market structure research, and delivers smarter routing decisions that improve execution outcomes amidst varying venue characteristics and liquidity fragmentation.
- By joining BMLL's products advisory board, Kepler Cheuvreux can guide the direction of BMLL's data, ensuring it remains relevant and beneficial for Kepler's needs, as well as accessing the BMLL Data Lab, a resource that further enhances Kepler's ability to innovate and adapt in the rapidly changing world of equities trading.
- With BMLL handling data storage and classifications, the complexity and cost of maintaining infrastructure for Kepler's KCx Omni project are reduced, allowing Kepler's team to focus more on innovation rather than data crunching.
