Session dominance is when a user trades a high percentage of the total volume for an instrument over an entire trading session. The Session Dominance Model in TT Score analyzes and scores clusters that may indicate when a single trader is dominating the filled volume of an instrument for the entire session.
TT Score computes a cluster score based on how similar the activity in the cluster matches trading activity that has drawn regulatory attention in other situations.
Higher scores indicate the trading activity within a cluster is more likely to risk regulatory concern. A company's risk monitors can use these scores to prioritize resources for investing which users' trading activity poses the most regulatory risk.
Each cluster is assigned a risk score on a sliding scale between 0-100. This score represents the probability that session dominance occurred during the duration of the cluster's trading activity.
Based on TT Score best practices, clusters that score over 75 are deemed to be “high risk” and should be the primary focus of users during their compliance reviews.
The Scorecard Metrics section measures the following statistics related to session dominance:
Use the Cluster Scorecard to get a closer look at the activity that triggered the session dominance score. The audit trail at the bottom of the scorecard can provide an indication of a trader dominating the volume traded for an instrument.
In this example: