TG OPTIMA, a US-based supplier of trading technology, has launched Investment Optimizer, a quantitative platform designed to better align trading decisions with investment intentions.
According to TG OPTIMA, the platform allows portfolio managers and traders to achieve optimal portfolio construction and best execution by streamlining the investment process, broadening risk control and proactively reducing costs.
“The lack of alignment between the investment decision and the trading decision in the financial services business is still a mystery,” commented Laurie Berke, principal at US-based consultancy TABB Group. “There is dissonance between the two processes despite the advances in trading technology and analytics. Implementation problems are created when the inputs to the investment decision don't make it to the trading desk. There is a clear need in our marketplace for a better way for these two partners in the alpha generation process to coordinate their efforts.”
Investment Optimizer incorporates features such as market and position risk management, and an integrated trade horizon and order book management tool. It is designed to supplement existing order management and portfolio analytics systems and can be adapted to work with pre-trade transaction cost analysis models including information leakage, liquidity impact, volatility, correlation, alpha, trading horizon, temporary and permanent impact. The platform also includes visual scenario analysis and excel-interfaced portfolio and data management capabilities, as well as support for risk metrics such as variance, volatility, tracking error, VaR, beta and correlation.
“When the execution process is comprised of separate inputs and disparate data sources, trading strategies are not always an accurate extension of investment decisions,” said Tony Gau, chief executive officer, TG OPTIMA. “We created the Investment Optimizer to bridge these gaps and give institutional investors the tools they need to implement investment strategies more efficiently.”