US-based broker Knight Capital Group has introduced Oasis, a ‘smart order execution’ algorithm that sources small- and mid-cap liquidity, to the European market. Oasis has been available to US client since June 2009.
Oasis is designed to allow users to efficiently source liquidity in thin and difficult-to-trade stocks. The strategy evaluates liquidity, volatility, price trend, momentum and other characteristics in real time to determine the best sources of liquidity and help minimise market impact. Oasis also includes anti-gaming procedures such as continuous monitoring for adverse trading behaviour to limit information leakage further.
As with Knight’s other execution algorithms, Oasis is powered by FAN, the broker’s smart order execution algorithm, which sources liquidity from multiple venues while adapting to market conditions in real time.
“Higher volatility, reduced liquidity and wider spreads are just a few of the challenges associated with trading small- and mid-cap stocks,” said Bradley Duke, managing director, Europe, at Knight, in a statement. “Knight has deep expertise in these often thinly traded names as well as in the complexities of trading across the fragmented European marketplace.”
Knight’s entire algorithmic suite, including Oasis, can be accessed thought Knight Direct, the broker’s multi-asset class execution management system, as well as through a number of third-party execution and order management systems via Knight Direct’s FIX capabilities.