Commentary

Tim Quast
Traders Magazine Online News

We're All HFTs Now

In this guest commentary, author Tim Quast looks back at the history of HFT and how the market has evolved to where many firms now fit the definition of high-frequency trader.

Traders Poll

Are you in favor of a pilot program and examination of the rebate system by the SEC?




Free Site Registration

June 5, 2013

Barclays Algo Adds Capital

By John D'Antona Jr.

Barclays now offers U.S. traders the ability to tap the broker's capital when executing an order via select algorithms.

The new functionality is a first via an algorithm, according to Barclays. The firm also claims this will help the buyside find the liquidity it needs faster, transferring risk away from the institutions by allowing the bank to either buy or sell equities to complete a trade.

Clients must be entitled by Barclays before they can use the capital commitment feature, head of equities electronic trading Bill White told Traders Magazine. Once set up, clients can select the feature on a per-order basis via box on their algo order screen. White said the capital commitment feature is currently available in its most popular algorithms, Hydra and VWAP.

"With a click of a button on their EMS, the buyside trader puts in his inputs and that's it," White said. "This is really about simplifying clients' work flow, assisting in liquidity capture and execution risk management."

Here's how it works: Once a trader clicks the capital commitment button, a portion of the client's order is eligible for capital commitment, thereby providing the client with instant liquidity, as well as saving them the execution cost associated with that portion.

Barclays is offering this capital commitment feature in all U.S. stocks in which it makes markets, White said.

 

(c) 2013 Traders Magazine and SourceMedia, Inc. All Rights Reserved.
http://www.tradersmagazine.com http://www.sourcemedia.com/