Scott Daspin, managing director, global electronic sales, ConvergEx: "Our large asset manager clients have told us that up to 20% of the orders that cross their desks account for less than 1% of their daily volume."
ConvergEx Group has announced that it has launched a new version of IQx®, its algorithm designed to automate the trading of small orders. Its enhanced market intelligence includes volume prediction and price prediction engines that autotune small orders to current market volatility. IQx's upgraded slicing technology continually adjusts trading speed as an order becomes more or less risky throughout the day. These risk-adjustable decision engines are designed to work best for orders that are less than 5% of a stock's daily average volume.
"Our large asset manager clients have told us that up to 20% of the orders that cross their desks account for less than 1% of their daily volume. In addition, our quantitative clients have asked for enhanced small order technology in order to address slippage that may occur during periods of higher volatility. We built this technology to help give these clients a hands-free tool to automatically manage these orders, while achieving price improvement," said Scott Daspin, managing director, global electronic sales. "For these clients, trading small orders has become increasingly complicated, so the new logic built into IQx automatically determines how fast or slow to trade an order and whether or not to be in the non-displayed markets in order to trade these orders in the most intelligent way possible."
"IQx reads the market for each order to come up with an opinion about expected momentum, printing behavior, volatility and volume," said Gary Ardell, head of ConvergEx's Financial Engineering and Advanced Trading Solutions group. "Additionally, because tick increment, trading volumes and regulations vary greatly between various global markets, we also built specific market data into the new IQx so that it knows how a small order should be traded in each individual global market."