Investment Technology Group (ITG), an agency brokerage and technology provider, has launched a new algorithm for the Asian markets designed to pursue best execution in volatile markets.
The Flexible Participation algorithm allows traders to manage multiple orders simultaneously across Asian markets, by giving them the option to pre-set trading instructions and alerts. For example, an order can be set to complete as soon as a favourable price level is reached to take advantage of available liquidity.
Flexible Participation’s ability to respond rapidly to market moves and automate execution at designated price levels can help reduce the inefficiencies and costs that may arise when traders need to constantly monitor multiple orders, calculate the effects of price changes and manually adjust and execute trades. The algorithm can also be programmed to trade more or less aggressively, in relation to the desired stock price. ITG said it can be set to trade against a wide variety of market and trading benchmarks, and is particularly suited to implementation shortfall.
“Executing across Asian markets presents many challenges for the buy-side trader and costs can be high,” said Gabriel Butler, head of sales and trading for ITG in Hong Kong, in a statement. “This is even more apparent given current market volatility. The algorithm will allow traders to implement strategies with a large number of variables in order to seize liquidity at a price they want.”
Flexible Participation is also available in North America and Europe and is accessible via ITG’s Triton execution management system, Portware and a number of other third-party EMS providers.