Visualization adds value to client order workflows

Key Takeaways

• Specialized visualization tools help manage data and derive actionable insights.
• Sunburst charts effectively visualize client order flow data.
• Integrating visualization tools into trading solutions enhances decision-making and actionability.

Capital market participants work with huge volumes of data every day. There has been a growing demand for specialized order flow visualization tools to manage this ever-growing flow of information and derive usable insights. By generating charts and graphs, traders, brokers, and other participants can focus on the most relevant data, identify trends, and generate insights to guide their decision-making. However, different data types are not equivalent, and visualization tools that add value to one area may be poorly suited to another. Indeed, brokers looking to understand their client order flow have specific requirements for data visualization.

Traders widely use charting to visualize and track price or volume metrics in specific markets over time. A range of different chart types can display this data (such as the classic candlestick indicator), and various specialized mathematical studies (often based on moving averages) are also used to highlight trends and insights. For this use case, a wealth of visualization options is available, particularly for those conducting technical analysis.

However, there are many different trader workflows, and each has specific data requirements. For firms carrying out agency trading on behalf of buy-side clients, one key need is to monitor and quickly understand their client order workflows in real time. A consolidated view of which customers are sending flow and the sectors and instruments they are targeting can generate valuable business insights. Likewise, traders must be able to see quickly where orders have been routed or executed.

Traditional price and volume charts are poorly suited for analyzing live and historical order flow. Displaying time series information is far less important, and comparing data across multiple clients, instruments, or venues on a single chart is difficult. To investigate sequential data like order flows, brokers need flexible tools and visualizations adapted to show hierarchical variables.

Order execution tracking

Various chart types, such as snake or tree diagrams, might fit the bill. However, sunburst charts are most suitable for the visualization of order flow data. The multi-level structure of the sunburst allows users to track the flow from reception to execution, and it’s also easy to compare different segments at a glance. For example, a user could configure a chart showing the total inbound order volume in the center. This depiction would give a quick understanding of the total size of inbound business. The outer layers can then break this down by primary criteria (for example, client), then multiple other criteria, such as order-side, sector, and exchange. The complete chart, therefore, allows a user to understand the overall structure of their order flow easily, and quickly compare the order flow breakdown between different customers, sectors, or trading venues.

When working with hierarchical data, like order flows, flexibility is key. Quickly selecting different parameters and rearranging their order is a significant advantage. This ability empowers users to structure their data quickly to obtain insights in various areas, drill down into specific segments, and easily set up comparative studies.

Generating insights is about making better-informed decisions and taking action. Hence, it’s advantageous to integrate visualization tools into a wider trading solution. Taking order management actions from a chart, such as routing to a venue directly, allows users to act on their insights quickly and helps turn analytics into a key part of the wider order management workflow.

At ION Markets, we want to ensure that Fidessa users have the tools to understand their data and make informed decisions. We’re rolling out Fidessa Order Visualization functionality, building on our existing Navigator grid to deliver rapid insights into client order flow and empowering traders to build bespoke reports.