Tackling Portfolio Trading with Algos
Two New Players Get into the Game
Traders Magazine, March 2007
Trading entire portfolios with algorithms is not high on the buyside's to-do list, but that isn't stopping brokers and vendors from developing technology to make it possible. Agency brokerage Instinet and technology firm FlexTrade Systems recently joined a growing list of broker-dealers deploying algorithms to analyze and trade hundreds of stocks at a time. "More buyside firms have taken active control of their portfolios, and more trading decisions are moving in-house," says Vijay Kedia, president of FlexTrade. "A buyside firm now doesn't have to expose an entire portfolio to a sellside firm to leverage a portfolio-level algorithm."
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