All Wells Fargo algos access non-displayed liquidity. Komodo Dark will only access dark pools .
Wells Fargo looks at latency, quality of execution and available liquidity as criteria for accessing non-displayed venues.
Komodo Dark builds a heat map which determines which venue has had the most success in a name. When the child order is completed another wave is sent to the venue where the order was filled, segregating from other pools with lesser fill rates.
The Komodo algorithms act in accordance to a client’s urgency and alpha. Wells Fargo interacts with both lit and dark venues to minimise information leakage. Komodo Aggressive will cross the spread, strategically rest in dark pools, and ping lit markets. Komodo Medium and Passive will rest in dark pools achieving fills at midpoint or better and will not post in lit markets.
All anti-gaming parameters are enforced and managed internally. Wells Fargo does not allow destinations to reroute any of its orders. The firm monitors its counterparties to ensure they don’t send IOIs on its flow. In addition, Wells Fargo prohibits the use of iceberg orders and hidden midpoint peg orders which have become susceptible to gaming.
Service and reporting
Wells Fargo provides a full suite of algorithms that are customisable as well as a team of traders and technical support that is available to field any questions. Additionally the firm provides a website where clients can monitor executions for full transparency.
Wells Fargo has announced the addition of a program trading desk, which will specialise in the trading of equity portfolios, fund rebalances, and other basket trading strategies.