PDQ ATS, a Chicago-based trading system, now offers less latency-sensitive traders new algorithmic order types. The new order types are available through the AlgoSuite platform.
High-frequency traders are already using PDQ’s algo order types, which execute order instructions using computer-based algorithms. Now the algos are available to others.
PDQ expects the order types to appeal to manual traders who do not typically enjoy extremely fast execution, such as day traders, point-and-click traders or even some institutional traders.
These traders normally do not have any hardware or software located under the same roof as exchanges’ matching engines, to speed up the execution of orders. But with this suite, such traders can have “co-located” algorithmic order execution without any investing in infrastructure or networking.
AlgoSuite has three specific order types: AlgoWork, AlgoStop and AlgoMid.
AlgoWork is designed to attain the best price at the national best bid and 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 told Traders Magazine.
AlgoStop is designed to be placed as an intelligent stop-loss order. It will prevent stop losses from being executed until necessary, O’Malley said.
AlgoMid maximizes queue position on midpoint orders. It leverages PDQ’s low-latency infrastructure, placing orders at the earliest possible opportunity.
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