Townsend Analytics (TAL), an provider of electronic trading solutions, has integrated algorithms and
execution services for Asia and Canada from UBS Investment Bank into its RealTick order management system (EMS).
The company says clients of both firms can now directly route algorithmic, direct market access (DMA) and care orders for Asian equities, and algorithmic and direct market access (DMA) orders for Canadian equities, to UBS through RealTick. Customisable strategies are tailored to each market centre and include benchmark driven algorithms (price inline), participation algorithms (volume inline), TWAP, VWAP, float, IS, stop loss and hidden.
According to TAL, the use of electronic trading techniques in Asia such as DMA and algorithmic trading is still in its infancy, hindered by fragmented markets, wide spreads, regulatory hurdles and local market nuances.
“Trading stocks in Asia is more difficult than in other markets – spreads are wider while liquidity is more challenging to access,” said Tim Wildenberg, managing director, head of European direct execution, UBS, in a statement. But he adds, “UBS’s proprietary algorithms and services, combined with RealTick’s advanced execution management functionality, give our clients the technological advantage to take the lead in electronic trading in Asia.”