It seems almost providential that at a time when financial market gyrations have been keeping broker/dealers on their toes that Nasdaq should come out with a vital tool for tracking stock market trades. But Claude Courbois, associate vice president of data product development at Nasdaq, says the new tool, Market Replay, has been in the works for a while, and even if it happens to have been released when market participants are looking to get as much precision as they possibly can to keep abreast of the constant volatility they are facing, Market Replay could play an integral role in the ongoing need for market precision.
“This is all about confidence–about getting people confident to trade and getting them confident about investing in the market,” Courbois says. “We’ve had a great response to the service that Market Replay provides because really want data that is a lot more precise, particularly in these times, when the market is moving so fast.”
Market Replay is a replay and analysis tool, allowing users to view, with a simple click of their mouse, a consolidated order book data for Nasdaq-, NYSE-, and Amex-listed securities at any point in time. A Web browser-based application, Market Replay gives broker/dealers what they need to validate best execution of trades and Reg NMS compliance, and enables them to rebuild an entire trade so that they can send their clients a Nasdaq-validated screen shot of the moment their particular trade occurred, thereby assuaging whatever concerns investors might have.
“Broker/dealers are struggling to give investors the confidence they need,” Courbois says. “Market Replay allows a broker/dealer to see every price a stock has touched to the millisecond.”
For companies such as New York, City-based Lime Brokerage, which caters to high-speed, automated trading firms, Market Replay is a welcome and vital addition to their suite of tools. Very often, customers complain that trades have been erroneously executed, says John Jacobs, director of operations at Lime, and for traders to be able to contest the claims properly, they need to have excellent ammunition.
“Market Replay can help us go back and review whether a trade really needs to be busted or not, and it helps us be stronger advocates for our clients,” he says.