Instinet Execution Experts’ team use quantitative analysis, microstructure research and feedback from clients to design and development algorithms within the Execution Experts algo trading suite.
The biggest focus for 2014 will be further performance
tuning. The introduction of a new global framework allowing for closer
integration of a wide range of real-time analytic signals will help balance
queue management with opportunistic liquidity taking across all Instinet’s
algorithmic trading strategies.
Instinet’s algos harness robust complex event processing
systems to handle the large amount of market and flow data. These systems
enable efficient queuing and liquidity taking decisions within an algorithmic
trading platform, but designing and building them is a significant endeavor.
Instinet has also developed sophisticated
passive-side trading techniques designed to give institutional traders access
to the same type of advanced liquidity-providing tactics used by market makers.
MAKE, Instinet’s latest addition to its global algorithmic trading platform, is
designed to support a range of different styles of liquidity providing,
balancing adverse and negative selection in the context of trade urgency and
Asia’s wide variety of microstructure conditions.
The average professional development experience of
Instinet’s Asia team is 13 years in finance, with an average of at least eight
years specifically focused on cash equities algorithmic trading.
Algorithms for use in Asian markets are built in Asia.
Real-time analytic signals are designed and calibrated both in the US and Asia.
Given the time different between Asia and other major centres, a local
development presence is a significant positive to improve the development and support
infrastructure for the end-client.