Spread Analysis - Overview
Spread Analysis Tools
Spread Analytics provides a number of different options for assessing your own pricing models and LPs spreads:
- Spread Histograms allow you to view how long each LPs top-of-book or full stack spends at that spread over a given period. Spread histograms can also be used to compare how spreads difference across timezones.
- Spread Charts plot the published spread for every LP and pricing model over the selected period of time allowing you to quickly assess stability and width of spreads across the market. This can also be used to view either top-of-book or full stack.
- Mean spreads show the aggregated spread of selected markets overlaid by the mean from the period.
Accessing Spread Analysis
Spreads are accessed from the Market Data menu drop-down in the toolbar.
Alternatively, to view the spreads around a specific times or event and instrument, use the trade tickets accessed from yield profiles or top-of-book by clicking the instrument and selecting spread or spread histogram:
LP Spread Analysis
LP Spread analysis is useful for analysing which markets spend the most time at top of book per instrument, and compare against your own aggregated stack.
This can help you decide which LPs are useful to have in the mix and those that do not pull their weight. Understanding this allows you to best utilise each LPs rate provision to optimise your own flow:
- Use the best LPs in price formation to improve predictivity, speed and competitiveness
- Choose which LPs to include in pool formation for their provision of liquidity, continuity or spreads.
- Identify the best spreads for externalising client flow via hedging or brokering.
Learn more about why it is important to understand your LPs offerings, manage relationships and review spread provision.
Pricing Model Analysis
Spread analysis is equally important for your own rates, allowing you to understand the behaviour of your own model means you are able to identify weaknesses, avoid being run over and improve model competitiveness. The Spread screen enables you to monitor and measure your rates in fine grained detail across different timezones, news events or periods of high volatility.
Yield profiles can also be helpful in identifying the spreads you are giving to different subsets of flow.
Fitting Spreads to Your Feed
Our team uses Spread Configuration to match your spreads from the get-go. We maximise the seamlessness of pricing migration to minimise disturbance to client experience.