Easing the Program Load
Traders Magazine, November 2005
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.
All TradersMagazine.com articles are archived after 7 days. REGISTER NOW for unlimited access to all recently archived articles, as well as thousands of searchable stories. Registered Members also gain access to exclusive industry white paper downloads, web seminars, online technology directory, the iPad App, and conference discounts. Qualified members may also choose to receive our free monthly magazine and any of our e-newsletters covering the latest breaking news, opinions from industry leaders, developing trends and trading strategies.