Electronic market maker GETCO has added six new strategies to its buy-side algo offering, leveraging the firm’s high-speed technology.
GETCO’s GETAlpha algo suite is designed to deal with fragmented markets and deliver ‘micro alpha’ to institutional trading strategies. The algos are also built with the ability to deliver rebates that may be derived from trade executions.
“The number one issue we hear from institutional investors is a growing concern that their trades are not being managed with the level of care and attention they historically received,” said Chris Amorello, GETCO’s head of institutional sales. “They believe their executions could be better, but they are at a loss how to improve them with the strategies currently available in the marketplace.”
The new strategies include VWAP, percentage of volume, TWAP, implementation shortfall and smart order routing. According to GETCO its smart order routing strategy captures 99.5% of quoted prices across US equity markets. The market maker has also added an optimal alpha strategy that uses a proprietary index to determine the cost of liquidity at various times during a trading day with the aim of scheduling trades at the best times.
GETAlpha also includes an opportunistic algorithm, its first algo launched in June 2011, that allows investors to passively post liquidity similar to acting as a one-sided market maker. All of GETCO’s algo strategies are customisable.
“These strategies are being fine-tuned to respond to the evolving market on a monthly, weekly and even a daily basis. At GETCO, we understand that the markets move at lightning speed. We provide our customers with algorithmic innovation on a similar time frame,” added Chase Lochmiller, managing director of algorithmic trading at GETCO.
GETAlpha algos are available via a range of order management systems or through direct connections.
The GETAlpha suite of execution algorithms is widely available via OMS vendors or direct connection. In addition, GETCO has formed an exclusive partnership with broker and trading venue operator Mismi to offer its trading tools to NYSE floor brokers.