Investment Technology Group (ITG), a technology-based trading and research services company, has added an algorithm called Active to its suite of algorithmic trading tools in Europe.
ITG says its Active algorithm analyses market conditions and depth-of-order books to make its trading decisions. Active accesses POSIT, ITG's dark liquidity pool, to search for non-displayed liquidity. The algorithm's flexible approach capitalises on trading opportunities to outperform the arrival mid-price. To accomplish this, it provides liquidity to capture the spread, while releasing opportunistic orders to ensure trading completes as anticipated. ITG says that Active's anti-gaming logic helps to protect orders against predatory practices, information leakage and adverse price movements.
"Managing multiple orders in an increasingly complex marketplace is a challenge to institutional traders," comments Rob Boardman, head of algorithmic trading, ITG Europe. "ITG is committed to adding features and functionality to its algorithmic trading tools. We are confident that Active will be well-received at a time when demand for best execution requires a more flexible and accurate approach to trading stocks, particularly in volatile markets," he continues.