The Tradetech Daily

Societe Generale Alpha X

Societe Generale Alpha X

Alpha X is a crossing engine accessible via the firm’s QES algos. Orders from all three execution channels (QES, single stock and portfolio trading desks) access Alpha X via QES algos.

A majority of Societe Generale clients participate in Alpha X and crossing rates are typically in the low single digits. Crossing is done at the child slice level.

Functionality and order types

All types of algo orders with market and limit
prices are considered for Alpha X, which matches orders at mid-point. The order
of priority in matching is price and time. Client orders are matched against
each other first before matching with internal flow.

Access and participation

All access to Alpha X is via QES algos and direct
market access orders are not included in Alpha X. Clients can also choose not
to participate in Alpha X

Instruments traded

Currently, Alpha X is available in Hong Kong and
will soon be rolled out for Australian equities, followed by Japanese equities.

Order protection

As access to Alpha X is through QES algos, there is
no risk of gaming by other participants in the pool.

Connectivity/sharing agreements

In addition to Alpha X, QES algos access a number
of third party broker dark pools, connectivity to which is decided on a
case-by-case basis.

All crosses in Alpha X are reported to the Hong Kong Stock
Exchange in real-time.

Future developments

Alpha X will soon be launched for Australian and
Japanese stocks. A new dark pool, Alpha Y, will also launch and include the
ability to park orders and access direct market access and algo flow. A closed
loop of participants is also being considered to let buy-side firms to choose
whom they interact with.