Investment Technology Group (ITG), an agency broker and software vendor, has added Dynamic Implementation Shortfall (Dynamic IS), a list-based algorithm, to its suite of trading tools in Europe.
Dynamic IS is designed for portfolio and quantitative traders who want to minimise implementation shortfall costs and manage risk in volatile conditions. It works by trading opportunistically, allowing traders real-time control of risk exposure, cash balance, sector neutrality, time horizon and speed of execution. Dynamic IS can also adjust to real-time liquidity and market conditions, and trade in both lit and dark venues.
“Portfolio managers are under increasing pressure to maintain balance in their portfolio while avoiding risk,” said Rob Boardman, head of electronic trading at ITG in Europe. “ITG’s Dynamic IS algorithm helps clients reduce the volatility in an unexecuted list in real-time by adjusting parameters to meet their investment strategy. In today’s marketplace, managing risk has never been more important.”
Dynamic IS was introduced in the US in 2007 and has been specifically developed for US and European equities. It can be accessed via Triton, ITG’s execution management system and other third party systems.