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Easing the Program Load

Traders Magazine, November 2005

Michael Scotti

More programs, more algorithms. That's the trend on the trading desk at the Boston Company Asset Management, according to Larry Peruzzi. He oversees international trading at the money manager, a firm with $60 billion in equities under management. "It's all about managing cost and adding efficiencies," Peruzzi, a senior trader, says of the trading technology. About one-third of the firm's order flow each day is received in programs. The increase of programs from portfolio managers pushed the desk toward algorithms, Peruzzi explains. There are three primary reasons for that. First, an increase in new assets; second, more sector rotation within the funds; and, third, the firm is seeing clients moving assets from a strictly value strategy to a blend of value and growth strategies. Algorithms account for between 10 percent and 15 percent of the Boston Co.'s equity trading, Peruzzi says.

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