Improving Trust

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Execution quality analytics for today’s complex market

S3 is a financial services software company that provides customized solutions to monitor and analyze trade execution for options, equities, and fixed income securities.  The Company’s customizable software platform provides clients with the data necessary to understand those factors impacting best execution in today’s fragmented market landscape.  Additionally, S3’s market structure analysis tools include regulatory reporting capabilities that allow customers to better comply with regulatory mandates, enhancing transparency and ensuring a fairer trading environment.

Best Execution Analytics

Reporting and trade exception management solutions that optimize trade execution, streamline the search for price improvement, and simplify regulatory reporting compliance.

Buy-Side Execution Quality Suite

Advanced trading analytics functionality, order execution transparency and Transaction Cost Analysis (TCA) specifically for institutional clients.

Canadian Best Execution Quality Suite

Reporting and trade exception management solutions that optimize trade execution, facilitate order routing analysis, and provide insight on execution quality arising from differing market conditions between the U.S. and Canada.

Complex Option Spread Best Execution

Monitor and analyze complex spread transactions in order to achieve best execution and price improvement.

Bespoke Solutions

Our software engineers have extensive experience implementing and integrating with complex products, including everything from OMS and EMS platforms to automated high speed trading systems.

Regulatory Reporting Suite

Advanced analytics tools for SEC Rules 605, 606, 611 and Regulation SHO.

About Us

S3 is a financial services software company that provides customized solutions to monitor and analyze trade execution, facilitate transparency, and simplify regulatory compliance for options, equities, and fixed income securities.  The Company’s products are used today by many of the world’s largest financial institutions, broker-dealers, exchanges, bulge bracket and retail banks, and market makers to deliver market structure analytics and best execution reporting.  S3 leverages its proprietary software to provide third-party trade verification and optimize trade execution for both the U.S. and Canadian markets.

In the News

S3 EXPANDS PARTNERSHIP WITH BOX MARKET LLC

AUSTIN, TEXAS September 13, 2017S3 (“the Company”), a financial services software company providing innovative solutions to monitor and analyze trade execution for options, fixed income securities, and equities, today announced an expanded partnership with BOX Market LLC (“BOX”).  The Company will now provide BOX with additional, proprietary analytics solutions built upon insights garnered during the firms’ three-year-plus engagement.

S3 has created a portal specifically for BOX that enables the exchange to examine its participant’s trading activity and execution quality at a more in-depth level.  The Company has been providing BOX with execution quality reports since 2014, reports that are critical as they provide participants with deeper insight into the execution quality of their options orders transacted with BOX.  Building on the two firms’ trusted partnership, the new portal created by S3 provides BOX with more detailed information that enables it to help customers maximize their trading potential.  S3 will continue to advance its data reporting solutions for BOX in order to further simplify its back office reporting operations, as well as to provide a layer of intuitive monitoring so that BOX can determine its competitive position in the marketplace.

Mark Davies, CEO of S3, commented on today’s news, “We are excited to have expanded our relationship with BOX by providing even more advanced analytics and reporting solutions.  BOX shares our commitment to enhancing transparency in financial markets, and I believe that the unique insights we provide for the firm furthers our mission of improving trust in the securities industry.  These solutions are especially critical as regulatory entities increase their oversight of all market participants, including exchanges.”

Ed Boyle, CEO of BOX Market LLC, commented, “The new portal that S3 created for BOX allows us to quickly and easily create reports that offer critical insights into the execution quality of trading activity taking place on our exchange.  This tool integrates seamlessly into our existing systems and facilitates analysis of participant data at a much more detailed level.  We are very pleased with the portal and use it every day, and have enjoyed deepening our longstanding relationship with S3, which shares our commitment to market efficiency and transparency.”

S3 provides exchanges and other market participants with analytical solutions that offer unmatched insights into execution quality and order flow, facilitate regulatory compliance, streamline operations, and more.  Among other recent and major enhancements to its product offerings, the Company launched its Options Best Execution 2.0 platform in May 2017.  This cutting-edge software offering enables clients to attain more detailed insights on their options orders by analyzing a multitude of different market scenarios, including the ability to compare volume, available liquidity, and spread size.  Additionally, S3 has incorporated midpoint and spread separation analysis into the platform, as well as improved “tweener” reporting, intelligence that is critical for users to more effectively navigate today’s often convoluted market structure and determine the true execution quality of their orders.

For more information please visit: www.S3.com.

About S3

S3 is a financial services software company that provides innovative solutions to monitor and analyze trade execution, facilitate transparency, and simplify regulatory compliance for options, equities, and fixed income securities.  The Company’s products are used today by many of the world’s largest financial institutions, broker-dealers, exchanges, bulge bracket and retail banks, and market makers to deliver market structure analytics and best execution reporting.  S3 leverages its proprietary software to provide third-party trade verification and optimize trade execution for both the U.S. and Canadian markets.

S3 Enables Compliance with Recently Amended IIROC Best Execution Regulations in Canada

AUSTIN, TEXAS August 17, 2017S3 (“the Company”), a financial services software company providing innovative solutions to monitor and analyze trade execution for fixed income securities, equities, and options, today released a statement regarding the Company’s data analytics solutions and the recent updates to best execution regulations issued by the Investment Industry Regulatory Organization of Canada (IIROC).

IIROC recently amended its Rules Notice 16-0233, Notice 16-0234 and Rule 3300 to consolidate best execution requirements for broker-dealers, including as they pertain to these firms’ obligations to provide clients with fair pricing of over-the-counter (OTC) securities.  The amended regulations explicitly require broker-dealers to establish, maintain, and ensure compliance with written policies and procedures that are reasonably designed to achieve best execution when acting for a client.

Mark Davies, CEO of S3, commented, “The amendments recently issued by IIROC are indicative of the continued push by regulatory entities in all major financial markets to hold firms accountable for attaining optimal execution for client orders, in order to promote a more transparent and fairer marketplace.  At S3 we seek to improve trust in the securities industry, and as such we provide customers with unmatched insight into variables impacting execution quality.  As regulatory oversight increases, our Canadian customers can rest assured knowing that they have the tools in place to remain fully compliant.”

Specific aspects of the amendments, which will become effective in January 2018, include:

  • IIROC will now prohibit the practice of sending client orders in bulk to a foreign intermediary for execution outside of Canada without considering other liquidity sources, including those in Canada.
  • Broker-dealers must regularly review the way in which they manage client orders and order flow, in order to ensure that their best execution policies and procedures remain effective.
  • Firms must take order and trade information from all applicable marketplaces into account when determining routing strategies designed to achieve best execution.
  • With respect to OTC securities, IIROC considers a broker-dealer to have achieved best execution when it obtains a price that is fair and reasonable in relation to prevailing market conditions.
  • In the context of an illiquid security, broker-dealers may be required to canvass various parties to source the availability and the price of the specific security.

S3’s solutions, including its Canadian Best Execution Quality Suite and Fixed Income Execution Quality Suite, enable customers to determine the true execution quality of those orders executed on behalf of their clients, as well as their own orders.  The Company’s software platform enables its Canadian clients to meet all requirements of the amended IIROC regulations by providing them with more detailed insights on their orders.  The Fixed Income Execution Quality Suite incorporates data from a variety of sources, including evaluated prices.  Firms utilizing the platform can measure the value of a given bond one to two days before a given trade, at the time the order is executed and the day after the execution occurs.  S3 recently bolstered its fixed income offering with the addition of contra reporting functionality, which provides customers with greater insight into the trading activity of their counterparties.

Mr. Davies concluded, “Per the amended IIROC regulations, firms are expected to ensure that prices provided to its clients are fair and reasonable.  Determining what constitutes ‘fair and reasonable’ can be especially difficult for OTC bond transactions given the relative opacity of the fixed income market.  Our product suite mitigates this issue by enabling customers to conduct deeper analysis on their orders in order to adapt their trading operations to best suit the needs of their clients, ultimately improving trust in the securities markets and streamlining regulatory compliance for our Canadian customers.”

For more information please visit: www.S3.com.

About S3

S3 is a financial services software company that provides innovative solutions to monitor and analyze trade execution, facilitate transparency, and simplify regulatory compliance for options, equities, and fixed income securities.  The Company’s products are used today by many of the world’s largest financial institutions, broker-dealers, exchanges, bulge bracket and retail banks, and market makers to deliver market structure analytics and best execution reporting.  S3 leverages its proprietary software to provide third-party trade verification and optimize trade execution for both the U.S. and Canadian markets.

S3 Signs Leading U.S. Retail Bank to Its Best Execution Analytics Suite

AUSTIN, TEXAS July 13, 2017S3 (“the Company”), a financial services software company providing innovative solutions to monitor and analyze trade execution for equities, options, and fixed income securities, today announced that it has signed a major, United States-based retail bank to its Best Execution Analytics Suite (“the Suite”) for equities.  The customer win represents the Company’s ongoing success as the premier provider of execution quality analytics across asset classes.

S3’s Best Execution Analytics Suite enables clients to conduct comprehensive execution quality analysis, examine historical prices and orders, and compare their executions against other trades in the market.  Additionally, the Suite simplifies the reporting process, allowing customers to better comply with regulatory mandates including SEC Rules 605 and 606.  S3’s client base of institutions, broker-dealers, exchanges, market makers and banks continues to grow, demonstrating the unmatched efficacy of its analytics tools for equities, options, and fixed income securities.

Mark Davies, CEO of S3, commented on today’s news, “We are excited to have added one of the largest retail banks in the U.S. to our Best Execution Analytics Suite, which will provide the new customer with intelligence that is critical to more effectively navigate today’s often convoluted market structure.  Utilizing our Suite, the client will be able to determine the true execution quality of their orders and adjust their trading strategies accordingly.  Our proprietary software delivers actionable intelligence, ease of reporting functionality and greater transparency into those factors impacting best execution and price improvement, and we are proud to deliver these solutions to our growing customer base.”

S3 has implemented major enhancements to its product offerings in the first half of 2017 to support the specific needs of its clients, and has unveiled expanded functionality beyond its industry-leading best execution analytics offering.  The Company recently launched its Options Best Execution 2.0 platform for options trade analysis, which enables clients to attain more detailed insights on their options orders by analyzing a multitude of different market scenarios, including midpoint analysis – an industry first.  Additionally, S3 recently enhanced its Fixed Income Execution Quality Suite with the addition of contra reporting functionality, which provides customers with greater insight into the trading activity of their counterparties.

Mr. Davies concluded, “Recent enhancements to our software platform further S3’s longstanding history of innovation as we seek to provide critical execution insight, enable our clients’ success and improve trust in the securities markets by promoting a fairer trading environment.  We look forward to onboarding additional customers to our analytics platform and to enhancing our product suite on an ongoing basis as we strive to provide our customers with the most impactful tools available to navigate today’s complex markets.”

For more information please visit: www.S3.com.

About S3

S3 is a financial services software company that provides innovative solutions to monitor and analyze trade execution, facilitate transparency, and simplify regulatory compliance for options, equities, and fixed income securities.  The Company’s products are used today by many of the world’s largest financial institutions, broker-dealers, exchanges, bulge bracket and retail banks, and market makers to deliver market structure analytics and best execution reporting.  S3 leverages its proprietary software to provide third-party trade verification and optimize trade execution for both the U.S. and Canadian markets.

S3 helps buy side analyse counterparty performance

The Desk

July 10, 2017

S3 has added contra reporting functionality to its Fixed Income Execution Quality Suite in order to provide greater insight for clients into the trading activities of their counterparties

S3 Introduces Contra Reporting for Fixed Income Securities

Company augments Fixed Income Execution Quality Suite with counterparty analysis

AUSTIN, TEXAS June 20, 2017S3 (“the Company”), a financial services software company providing innovative solutions to monitor and analyze trade execution for fixed income securities, equities, and options, today announced that it has enhanced its Fixed Income Execution Quality Suite (“the Suite”) with the addition of contra reporting functionality.

The new contra reporting capabilities provide customers with greater insight into the trading activity of their counterparties, which is especially beneficial when grading counterparties on their executions immediately before and after the executions of a given client using S3’s Suite.  Customers are now able to analyze buy and sell orders from various counterparties over time, and thereby to identify trends.  This enhanced analysis enables the development of more sophisticated trading strategies, as clients can now identify how the activities of specific counterparties impact their own trading operations.  The introduction of contra reporting furthers S3’s initiative to implement expanded functionality beyond its industry-leading best execution analytics offering, diversifying the Company’s product portfolio while providing clients with additional market insights.

Mark Davies, CEO of S3, commented on today’s news, “Our new contra reporting functionality goes well beyond reporting to regulators, and it enables clients to determine the efficacy of their trading strategies at a more sophisticated level.  Many firms operating within the fixed income market are particularly sensitive to positions taken by their counterparties, given the relative opacity of this market.  The enhanced Fixed Income Execution Quality Suite enables these customers to conduct more refined due diligence in order to adapt their bond trading operations to best suit the needs of their clients.”

Firms utilizing S3’s Fixed Income Execution Quality Suite can measure the value of a given bond one to two days before a given trade, at the time the order is executed and the day after the execution occurs.  Additionally, the new contra reporting capabilities allow customers to examine price changes for bonds they trade immediately before and after each execution, as well as any resulting spikes or declines in the price of the security.  In order to enhance their trading operations, these clients require the ability to identify the strategies of their counterparties and to determine whether partnering with specific counterparties results in profits, or losses, over time.

Mr. Davies concluded, “The augmentation of our Fixed Income Execution Quality Suite furthers our mission of promoting fairness and enhancing transparency by enabling customers to determine which counterparties positively impact their fixed income trades, and which have the opposite effect.  Our contra reporting functionality for fixed income securities is available now, and we plan to introduce additional analytics capabilities for the fixed income space in the coming months as we continue to push for innovation in that ever-changing market.”

For more information please visit: www.S3.com.

About S3

S3 is a financial services software company that provides innovative solutions to monitor and analyze trade execution, facilitate transparency, and simplify regulatory compliance for options, equities, and fixed income securities.  The Company’s products are used today by many of the world’s largest financial institutions, broker-dealers, exchanges, bulge bracket and retail banks, and market makers to deliver market structure analytics and best execution reporting.  S3 leverages its proprietary software to provide third-party trade verification and optimize trade execution for both the U.S. and Canadian markets.