The Tradetech Daily

Jefferies

Jefferies

Strategies

Jefferies algorithms include benchmark-based
algorithms, such as VWAP, TWAP, Volpart, Strike and Finale. It also has
liquidity-seeking algorithms, DarkSEEK, SEEK, BlockSEEK, Post and Patience;
opportunistic algorithms such as Blitz; workflow solutions such as Trader and
MultiScale; and strategic algorithms such as spread/pairs trading, relative
trading and portfolio algorithms.

 

Key functionality

The Jefferies algorithms are built on a flexible
and customisable infrastructure designed for fragmented and changing market
environments. Unique work flow solutions enable traders/dealers to interact
with working algorithmic orders instantly.

 

The firm’s Trader algorithm lets the user pause, resume or
check dark pools with one click while its MultiScale algorithm allows traders
to combine multiple algorithms in one single strategy wherein each algorithm
can be made active at a certain (absolute or sector relative) price return.

Support

Based on the customer order flow, trading
preferences and specific alpha characteristics, Jefferies can provide
customised client and trader-level algorithms. These solutions come with
real-time monitoring tools and analytics designed to customers’ specifications
to make real-time decisions.

 

Access

Clients can access Jefferies algorithms through all
major execution and order management system vendors.

 

Routing

Jefferies offers direct electronic access to over
70 equity exchanges and liquidity venues across the Americas, EMEA and Asia.
Routing and accessing for any algorithm is based on quantitative analysis of
the liquidity accessed from these markets in the past, a point these algorithms
factor in routing. Jefferies runs daily and weekly analysis on fills from every
destination to measure liquidity, short-term information content, quality of
fills to adapt to changes in market behaviour.

 

Future plans

Jefferies plans to launch its Global Portfolio
algorithm, complete its algorithmic build out of emerging Asian markets and
expand its provision of quantitative research in equity marketplaces accessed
through algorithms.