Blog · Coverage and territory · Trading
The complete axe distribution calculation on ten axes sent by one desk, small enough to check by hand: each axe's instrument, side and the clients it was sent to, the blotter's trades in those instruments within the window, the match rule, axes received and traded per client, the axe hit rate, the client on every list who traded none, the client who traded the desk's axed instrument without being sent the axe, the salesperson's list age, and the assertion that matched trades are a subset of the blotter, so a reader can reproduce every figure and then run it on their own axe log.
Axe hit rate is a join between the axe log, the distribution records and the blotter, and on ten axes it can be done by hand. This page works the sends, the matches, the rates per client, traded-unsent, the list age and the assertion. Window: 4 hours. Product: credit.
| Axe | Instrument | Desk side | Sent | Sent to |
|---|---|---|---|---|
| 1 | Bond A | Sell | Mon 09:00 | X, Y, W |
| 2 | Bond B | Buy | Mon 10:30 | X, W |
| 3 | Bond C | Sell | Mon 14:00 | X, Y |
| 4 | Bond A | Sell | Tue 09:15 | X, W |
| 5 | Bond D | Buy | Tue 11:00 | X, Y, W |
| 6 | Bond E | Sell | Wed 09:00 | X |
| 7 | Bond B | Buy | Wed 13:30 | X, Y |
| 8 | Bond F | Sell | Thu 09:00 | X, W |
| 9 | Bond C | Sell | Thu 15:00 | X, W |
| 10 | Bond D | Buy | Fri 09:30 | X, Y, W |
| Trade | Client | Instrument | Client side | Time | Matches axe? |
|---|---|---|---|---|---|
| T1 | Y | Bond A | Buy | Mon 10:10 | Axe 1: yes |
| T2 | Z | Bond B | Sell | Mon 11:45 | Axe 2 window, right side, not sent: traded-unsent |
| T3 | Y | Bond C | Buy | Mon 16:30 | Axe 3: yes |
| T4 | W | Bond A | Buy | Tue 10:00 | Axe 4: yes |
| T5 | Y | Bond D | Sell | Tue 13:20 | Axe 5: yes |
| T6 | Z | Bond D | Sell | Fri 11:00 | Axe 10 window, right side, not sent: traded-unsent |
| T7 | X | Bond G | Buy | Wed 10:00 | No axe in Bond G: unrelated |
| T8 | W | Bond F | Buy | Thu 16:00 | Axe 8: outside the 4-hour window; no match |
matched trades ⊆ blotter: T1, T3, T4, T5 are blotter trades, flagged. Nothing added. Holds.
| Client | Axes received | Axes traded | Hit rate | Traded unsent |
|---|---|---|---|---|
| X | 10 | 0 | 0% | 0 |
| Y | 5 (1, 3, 5, 7, 10) | 3 (1, 3, 5) | 60% | 0 |
| W | 7 (1, 2, 4, 5, 8, 9, 10) | 1 (4) | 14% | 0 |
| Z | 0 | 0 | 2 (T2, T6) |
Receives everything, trades nothing: X. Ten axes, no trades. Remove from the default list or ask why.
Trades the axes, not sent them: Z. Two of the desk's axed instruments, right side, in the window. Add Z.
| Salesperson | List | Size | Last changed | Axes sent through it | Traded | List hit rate |
|---|---|---|---|---|---|---|
| S-1 | Credit default | X, Y, W | 14 months ago | 22 client-sends | 4 | 18% |
Fourteen months without a change, and the client who trades the axes is not on it.
Axes measured by sends. X received the most; the list looks busy.
Blotter not joined. Nobody knows Y trades three in five.
Traded-unsent unread. Z stays off the list.
T8 counted. Outside the window; a trade five hours later may be another conversation.
The same join per axe, per client per product, the same two lists, every week. Covirage runs it on the axe log, the distribution records and the blotter. The axe distribution guide covers the measure, and the hit ratio worked example covers the tiers the lists should be built from.
Same client, same instrument or a stated equivalent, opposite side to the desk's axe, within a stated window after the axe was sent, here four hours. A trade that could match two axes goes to the more recent. The rule is stated; the confidence is shown.
Because Z took the other side of the desk's axed instrument twice, in the window, without being told about the axe. Z would have traded the axe. Z is not on the list, and X, who has never traded one, is on every list.
The distribution list's last change date. A list unchanged for fourteen months was built on who was asked then, not who trades now. Its hit rate beside its age is the salesperson's review.