Waters Rankings 2019: Best Algorithmic Trading Provider: Clearpool

The winner for best algorithmic trading provider this year is Clearpool, besting Wolverine Execution Services, which had won this category the previous two years. It’s quite the coup for the New York-based company, which is only five years old.

A big reason for the company’s success is its growth, in both the number of clients adopting its Algorithmic Management System (AMS) and through its recent geographic expansion into Canada. Joe Wald, Clearpool CEO, says the Canadian expansion has laid the groundwork which will help the vendor to move into other regions and coverage areas.

“Our entrance into the Canadian market [represents] a new region for us,” Wald says. “This is a major part of our growth—basically it represents a blueprint for how we will continue to grow in the future.”

Clearpool added Canadian equities to its coverage earlier this year, providing access to a host of new order types and venues through its AMS platform. Along with regional expansion, Wald points out that the company’s network has grown to 140 broker-dealers.

And with that growing network, Clearpool is doubling down on its commitment to transparency, especially in terms of how customers can better oversee and customize the algorithms they use.

“There is fragmentation now in our market structure; with all the different venues available, you have to have tools that help you construct optimal order routing protocols orders and allow you to make adjustments and respond quickly as the market changes,” Wald says. ”The power of Clearpool’s AMS is that it is transparent and every client can customize their algos to differentiate themselves.”

For the future, Clearpool is looking to expand into more regions. Wald says Clearpool is ready to enter any market where there is electronic trading and where its algorithms make sense to deploy. The company is also cognizant of where it can fit with new regulations coming out, particularly around best execution. Wald points out that its platform and commitment to transparency is very much in line with policies around best execution.