Algorithmic execution management system vendor FlexTrade has developed a new version of its FlexPTS portfolio trade scheduler.
The goal of the system is to enable users to determine the best trading trajectory for their portfolios while minimizing market-impact cost and the risk of underperforming benchmarks.
FlexPTS endeavours to optimise trading schedules by weighing all the available data, such as user inputs, risk factor correlations, implied volatility, the estimated market impact cost, and the trader’s short-term alpha goals. While the system initially employs its own cost model, as well as short-term equity risk models from Northfield Information Services, FlexTRade claims FlexPTS is adaptable to any cost and risk models in use today.
“It’s been particularly problematic for buy-side institutions, which need to maintain complete confidentiality and control of their portfolios,” says Vijay Kedia, president and CEO of Flextrade Systems. “Pre-trade planning has always been a challenge in the industry. With FlexPTS, users can not only optimize their pre-trade schedules, but also implement real-time schedule adjustments due to its extremely fast computation. This is another example of advanced capabilities bundled with our FlexTRADER EMS, the leading broker-neutral trading platform in the world.”
Other features available through FlexPTS include:
. Optimization for Implementation Short Fall or Market on Close
. Determining the ideal start and end time for the trade
. Generation of trading schedules for part of a day or multiple days
. Support for portfolio and industry cash constraints as well as general linear constraints
. Maximum trading participation within specified time frames