Chicago-based alternative trading system operator PDQ introduced AlgoSuite, a suite of three algorithmic order types designed for the manual trader.
The algo order types are already in use with high-frequency and other latency sensitive traders.
But now manual traders can have co-located algorithmic order execution without any requisite infrastructure or networking costs. These conditional order types can be sent from any front-end connected to the PDQ ATS.
“PDQ’s AlgoSuite is a quantum leap in technology and access for today’s manual trader, “said Ed O’Malley, PDQ ATS’ president. “By using these algorithmic order types they have the ability to significantly increase their profit margin, as access to co-location services provide better fills and a higher likelihood of accessing rebates.”
AlgoSuite has three specific order types: AlgoWork, AlgoStop and AlgoMid.
AlgoWork is designed to attain the best price at the National Best Bid Offer. It starts by posting the order on the bid or offer and then uses algorithmic intelligence to identify the ideal time to cross the market. The manual trader can cover positions and save money, capitalizing on rebates when possible, and removing liquidity when necessary, O’Malley said.
AlgoStop is designed to be placed as an intelligent stop-loss order. It will prevent stop losses from being executed until necessary.
AlgoMid maximizes queue position on midpoint orders. It leverages PDQ’s low-latency infrastructure, placing orders at the earliest possible opportunity.
PDQ is known for its use of an auction model that offers a pause before orders are filled.
This year PDQ also announced parallel order posting capability for its smart order router.
