All UBS algorithms are designed to interact with non-displayed venues. UBS Tap offers the most discretion with urgency levels that allow clients to control how much of the order to expose to displayed vs. non-displayed markets. Setting the optional PIN complete parameter on other algorithms offers customisation opportunities.
UBS is not connected to every trading venue, nor does the firm allow all participants to connect to UBS ATS. Clients can also request to exclude specific venues for their orders.
Rather than make categorical ‘shut off’ decisions at the venue level, UBS adjusts its algorithms to make qualified decisions on when and how to access certain venues, according to the order’s execution goals. Order types and strategies adjust to flow patterns and participant types, so that the interaction is tailored to the venue, rather than cut off opportunities for liquidity.
Routing logic is a function of the algorithmic trading engine’s assessment of the best opportunity for the order, based on the symbol, parameters, and market situation. Then it reacts in real time to each venue’s behaviour, preferencing nondisplayed over displayed liquidity.
UBS algorithms are designed to be reactive in real time to unanticipated or ‘suspect’ behaviour. The company maintains dynamic volume limits and strict minimum fill requirements – based on market activity, the order’s urgency, the underlying stock and UBS’s view on the quality of each venue. UBS algorithms never allow IOIs in non-displayed venues.
Service and reporting
UBS’s global algorithmic and sales-trading teams are always available to provide trading insight and expertise. Additionally, UBS’s online analytics platform, UBS Fusion, provides transparent real-time TCA and a suite of fully customisable, real-time trading alerts.
UBS is developing more client-tailored and custom modifications for nondisplayed strategies and continues to deploy them in new markets and new asset classes.