Citi announced today it has upgraded and added new buyside trading functionality for its U.S. equity options algorithms. Traders can now select how aggressive an algo will be in seeking liquidity.
The intelligent option algorithmic functionality expands the firm’s existing Option DMA and Option Algo Order Types. All these strategies utilize Citi’s smart routing logic, which provides clients with unique liquidity and price improvement opportunities while avoiding information leakage, according to Kevin Murphy, head of its U.S. Option Electronic Execution.
Citi offers 11 options algorithms.
"Providing traders with speed, liquidity and the desired degree of exposure is essential in today’s rapidly evolving market," Murphy said.
The new options smart algorithmic suite includes several dynamic strategies for increased order execution flexibility and improved execution performance. Besides the TWAP and SmartPeg strategies, Citi offers the buyside trader multiple levels of aggression within the algos.
Murphy added that when aggressive settings are selected the algo will be more inclined to cross the spread when executing a trade. Conversely, when less aggressive algorithms settings are selected the algo will likely post orders mid-market and be reluctant to cross the spread.
Earlier this year, Citi added pairs trading functionality for equity securities to its platform . That allows traders to execute market neutral strategies, which is designed to leverage changing market conditions by simultaneously selling and buying highly-correlated securities.
