Agency broker and technology provider ITG's Hedge Pro pairs trading algorithm has been rolled out via the firm's execution management system, Triton, with availability on major third party front-end systems expected to follow shortly.
The algorithm is designed to allow traders to execute any North American pair combination, supporting all major pair trade types such as risk arbitrage, statistical arbitrage, switch trades and cross-border trades. Initiating and hedging is all handled automatically using continuous monitoring and signalling produced from individual quote ticks.
“Hedge Pro is designed to maximise investment opportunities by evaluating market spreads and reacting to quotes in real time,” said Hitesh Mittal, ITG's head of liquidity management. “This new capability gives traders the flexibility to employ virtually any pair trading strategy in the US and Canadian markets.”
Hedge Pro is part of ITG's suite of algorithms, which attempt to reduce market impact, maximise execution quality and improve trading performance across each new market. ITG's algo offerings include POSIT Marketplace, Dynamic Implementation Shortfall and Raider.