All UBS algorithms are designed to interact with a variety of non-displayed venues. UBS Tap offers the most discretion, with urgency levels that allow the user to control how much of the order to expose to displayed versus non-displayed markets.
UBS’s algos access a range of independent and brokersponsored pools and the dark books of displayed venues in the US and Europe, in addition to its own UBS PIN crossing network. The algos also access UBS PIN in the Asia-Pacific region.
While all UBS algorithms access UBS PIN, clients may opt out, as with any venue the firm accesses. Clients may also opt out of interaction with certain types of flow within UBS PIN.
UBS is not connected to every trading venue. The firm has specific venues excluded by default for some clients’ 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.
UBS algorithms are available through all major order and execution management systems, UBS’s own Pinpoint EMS, or FIX.
UBS’s algorithmic trading engine will seek optimal price/time execution opportunities based on both real-time market data and the parameters provided by the client.
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 non-displayed over displayed liquidity, all things being equal.
UBS algorithms are designed to be reactive in real time to unanticipated or ‘suspect’ behaviour. The firm maintains strict minimum fill requirements and dynamic volume limits, and the algos never allow indications of interest in non-displayed venues. Additionally, UBS’s algo specialists and electronic sales traders are always on alert.
All UBS algorithms include a range of parameters that allow clients to fully control the strategies’ behaviour.
Additionally, customisation is available on a client-by-client basis. Service and reporting UBS’s global algorithmic and sales-trading teams are always available to provide trading insight and expertise. The firm’s online analytics platform, UBS Fusion, provides real-time transaction cost analysis and a suite of real-time trading alerts.
The firm is developing more client-tailored and custom modifications for its nondisplayed strategies and continues to deploy them in new markets and asset classes.