SunGard has announced that its algorithm provider, Fox River Execution Solutions, is set to expand its Asian coverage to offer use of its algorithms in the Japanese equity markets.
The roll-out will allow institutional investors based outside of Japan to use the Fox River algorithmic suite including smart order routing, and both passive and aggressive intelligent liquidity seeking strategies.
A spokeswoman for Sungard told The TRADE Asia that Fox River algorithms would be effective across all major trading venues in Japan. “We are not tied to the traditional ways of developing algorithms in Japan, including preferencing wider spread venues like the Tokyo Stock Exchange and Osaka Securities Exchange over narrower spread venues like Chi-X Japan and SBI Japannext.”
Sungard also makes the claim in its statement that its product acts, in effect like a “brilliant human trader”. We asked Sungard what that meant.
“This also relates to how we act differently. We have developed short term alpha signals for the Japanese market that guide the behaviour of the algorithms. Those short term alphas are based on the insights human traders add to the trading process. We are effectively making price decisions. This is in contrast with the typical algo behaviour that attempts to model volume. We feel there is greater value to modelling prices than modelling volume.”