ConvergEx’s approach to research and development is driven by client demand, beginning with idea generation, followed by proof of concept. The firm uses its proprietary quantitative analysis to create innovative algorithmic products.
The company works toward improving performance and minimising costs and sees cost savings as well as regulatory and market structure changes as key drivers for many of its algorithmic trading strategies.
In 2014, the firm’s priorities include introducing
technologies that address system capacity, redundancy, resilience, control and
recovery. ConvergEx is constantly improving reliability during market stress
and performance, while keeping abreast of regulatory developments and risk
The firm sees the technical barriers to the next
generation of algo products as creating technology and infrastructure that is
scalable and flexible to adapt to nuanced rules and regulations in the global
The firm’s Asian algos include routing technology,
customisable route profiles, an extensive set of routes and comprehensive
anti-gaming logic. Its closing algos incorporate customised logic that
accommodates a diverse set of behaviors.
Customisation includes technology that addresses
limitations on market data feeds, odd-lot trading and market variations,
including mid-day breaks in certain markets or different auction behavior
during triple witching or index rebalance days where trading halts or where
there are unconventional auctions due to regional requirements.
ConvergEx sees a shift from benchmark algos to
liquidity-seeking algos but is aware that clients can become confused by
strategies with too many parameters and therefore look to providers to simplify
The firm’s development team is staffed by industry
veterans with experience in the electronic trading space. The algos are built
in Boston, but with a global perspective.