Japan-based investment bank Nomura has added new equity execution strategies to its ModelEx algorithmic trading platform in Asia, claiming to be the first broker to offer high-frequency-style tactics to all its clients in the region.
The bank has also introduced co-location for its TactEx strategy for Japan, allowing clients to co-locate next to the Tokyo Stock Exchange (TSE), affording them low-latency connectivity for market data and market access. Co-location services were implemented at the TSE at the beginning of this year in conjunction with the launch of its new Arrowhead trading system.
As well as TactEx, Nomura has introduced the SmartDark algorithm for Japan. SmartDark slices a large order into smaller pieces and sends them to NX, the bank’s internal crossing engine. Users can choose to trade each order in NX at the mid-point, the bid price or the offer price.
In addition, Nomura has made available Hide and Pounce, used to buy and sell at the bid and offer price while hiding size; Float, which avoids the cost of crossing spread and always buys/sells by joining the bid/offer side in orders size appropriately for a stock’s typical depth; Risk Arb, which allows relative value trading and trading of takeover targets by using a pairs trading strategy to target user-specified target relative valuation levels; and Portfolio Strike, a basket implementation shortfall strategy that balances market impact costs and execution risk of portfolios traded across Asian markets at the same time.
Clients will also be able to measure algorithmic post-trade execution performance at the child order level with ModelEx Monitor, a real-time analytics tool.
“Integrating trading algorithms and trading analytics at both the product and service level is a clear industry trend, and as a FIXatdl compliant broker, deploying the new strategies onto clients’ desktops has become much easier,” said Hongsong Chou, Nomura’s head of equity quantitative analytics, Asia-Pacific, in a statement. “The availability of ModelEx Monitor also enables all ModelEx strategies to become more transparent to clients.”