Correction: BOC Injects C$3bln in Term Repos
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Six Gunmen Shot By Indian Security at New Dehli Airport --BBC
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Of The Major Parties at Auto Hearing, Only UAW Has Done Something --Dodd
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BOC to Buy Back Up to C$500mln of Bonds on Wednesday
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Congresss Will Try Passing Auto Bailout Bill Before Leaving
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Senate Banking Committee Hearing On Auto Bailout Ends
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30yr Yield Drops to Record Low for 4th Day -- 3.0532%
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Stocks Off New Lows - S&Ps Down 4% at 833, Dow Down 3.5% at 8270
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'Not Persuaded' on Auto Bailout --Shelby on Bloomberg TV
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S&P Just Off Lows, Down 3.2% to 843
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Chrysler "More" Than Happy to Provide Assurances Taxpayers Will Get Money Back
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Citadel down 47% YTD - WSJ
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Nardelli - Cerbeus will provide security for taxpayer money
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GM Down 9.2%, Ford Unch As Bailout Hearings Continue
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S&P Cuts Sears from BB to BB-
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Frank, Kashkari sitdown on Thursday re TARP
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Chairman Frank Says Congress Would Reject 2nd Part of $700 Billion Bailout If Vote Held Today
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GM turned down Chrysler merger because market dropped, merger costs, public funding might have been available
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Nardelli - defending Cerbeus interest in Chrysler
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Chrysler CEO Nardelli - private equity is not a few rich guys taking over a company
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Elkins/McSherry Analysis Reveals Edgetrade?s VWAP Algorithm Outperforms 93% Of Large Institutions in Universe Comparison

EdgeTrade today announced results of a recent Elkins/McSherry analysis that showed EdgeTrade?s VWAP (Volume-Weighted Average Price) algorithm, including market impact and commissions, outperformed 93% of a universe of large, billion dollar institutions during calendar year 2005. The Elkins/McSherry universe is a compilation of institutional trading data from over 220 large institutions. It covers more than 20 million trades, $5 trillion dollars of principal and 400 billion shares of trading from 1500 investment managers and 2000 brokers worldwide. Elkins/McSherry uses this trading data to assess institutional averages for commissions, fees and market impact costs.

Volume-Weighted Average Price is a benchmark, measuring the price at which the majority of a given day?s trading in a particular stock took place. Calculated by taking the weighted average of the prices of each trade, VWAP is commonly used by institutional investors such as pension plans.

?There is a notion that most VWAP algorithms are alike; nothing could be further from the truth,? said EdgeTrade CEO, Joseph Wald. ?The empowered buy-side ? traders who are taking complete control of their trading and execution decisions through adoption of algorithmic and DMA (direct market access) technologies ? is just beginning to understand the significant cost ramifications between sending their orders to an agency VWAP algorithm like EdgeTrade?s, versus those offered by firms that conduct proprietary trading. With the mandates of Reg NMS on the horizon, large asset managers and pension funds, for example, no longer can ignore the fiduciary consequences of receiving poor execution by sending their orders to a proprietary desk algorithm ? particularly VWAP, which is one of the easiest to pick apart.?

?Our most consistent method to trading cost analysis utilises VWAP,? said Elkins/McSherry Senior Managing Director, James Bryson. ?This approach is widely accepted by institutional traders, given that the VWAP is a good benchmark for indicating the potential cost to buy or sell stock.?

?As algorithms become more widely available, the buy-side is turning to transaction cost analysis to match the most appropriate algorithm with a given strategy, as well as identify whose algorithm is likely to outperform similar offerings,? said TABB Group Analyst, Adam Sussman.

Industry research suggests that algorithms, while ubiquitous, are currently underutilised by the buy-side. EdgeTrade?s organically developed algorithmic strategies, however, are actively used by the firm?s clients as an important productivity component in their arsenal of electronic trading tools. EdgeTrade attributes this high usage rate to education and training, provided to each client user on an ongoing basis, and the firm?s quantitative team that offers an unconflicted, agency-based consultative environment for discussing both a trader?s confidential trading objectives and the customisation of an algorithmic strategy for reaching those goals.

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