Commentary

David Weisberger
Traders Magazine Online News

Stop the BS & Promote Real Transparency!

In this shared blog, David Weisberger says a recent WSJ article is wrong and that traders do need to purchase faster and more comprehensive market data to avoid being fined for violating "Best Execution" obligations.

Traders Poll

Is information leakage a major concern of yours when you trade?



Free Site Registration

December 18, 2012

GETCO Expands Algo Offerings

By John D'Antona Jr.

Market maker GETCO is adding two new algorithms to its stable, expanding its GETAlpha electronic trading offerings to six. Other new algos are also coming in the next few months.

The two new algos are implementation shortfall and percentage of volume. They join the firm's other existing trading algos, such as its volume-weighted average price and Optimal Alpha.

The algos are designed for faster trading, including better daily and minute-by-minute performance, according to GETCO.

Both the new and existing algorithms are designed for more effective multiple venue institutional trading. As a market maker offering algos, GETCO looks to create very small amounts of alpha with every trade. This is achieved by virtue of its tools and traders being in the market every day, examining micro-market structure signals to understand the fair value of a security at any moment in time.

By being able to either buy on the bid or sell on the offer, the algos help clients capture more of the spread, said Chris Amorello, head of institutional sales at GETCO.

And the market maker has more algorithms on tap. Amorello said the firm is beta testing a more aggressive liquidity-seeking tool which should be released soon.

 

(c) 2012 Traders Magazine and SourceMedia, Inc. All Rights Reserved.
http://www.tradersmagazine.com http://www.sourcemedia.com/