ITG is an agency broker with a focus on execution technology and improving trading efficiency for clients. With in-depth Asia-Pacific market knowledge, ITG is well place to cater to the needs of Asia-based clients, market structures and regulation. Algorithm research and development is essential to maintaining and developing its full algorithmic product range and to help its buy-side users develop bespoke tools for their workflow and trading requirements.
In 2014, ITG’s key algo development priorities
include the expansion of dark liquidity and liquidity management technology;
developing greater interaction of block liquidity with electronic flow;
incorporating sophisticated post-trade feedback into algos; and overall
performance enhancement of the firm’s algorithmic suite. ITG also has a major
focus on providing the buy-side with transaction cost analysis tools to analyse
and improve algorithmic performance.
ITG has customised a number of its algos with
liquidity sourcing functionality to improve client access to a combination of
lit and dark liquidity. It has also driven a number of client-specific
customisations including tailoring algorithms for small orders and for trading
certain categories of stocks by market capitalisation.
ITG clients require algorithms to be customised for
specific workflows to meet traders’ preferences for trading in specific
markets, sectors or stocks.
ITG algorithms are built on a global infrastructure,
but with expert teams based in the Asia-Pacific region to build or customise
algorithms to take into account regional market structure and client
demands. The firm believes the
combination of shared global knowledge and best practices with local expertise
in market microstructure is essential to producing market-leading algo tools.