Convergex launches new stealth liquidity algorithm
New York 16 June 2016
Image: Shutterstock
Global broker Convergex has launched its new Small Cap algorithm to maximise liquidity in traditionally illiquid stocks.
According to Convergex, Small Cap rests completely hidden in over 15 alternative trading systems and is able to exit the market when it ‘senses’ that it is signalling its presence in the market place.
The algorithm will then return to the market when it determines that it is advisable to re-engage.
Meanwhile, block executions are continuously analysed for the potential execution of conditional orders.
The new offering brings unique features including the ‘Shot Clock’, which strategically takes liquidity from lit and dark markets, along with Convergex's proprietary fair price model.
Convergex confirmed in a statement on the launch that traders can set the Shot Clock to take liquidity for each desired name at time intervals tailored to their specific preference.
“In essence, the Shot Clock feature allows traders to have full control to replicate the manual workflow they are currently using to trade small cap stocks.”
“In addition, executions are regulated by Convergex's proprietary fair price model that enables traders to source as much liquidity as possible in less liquid names while minimising impact in the market place.”
“Finally, the Small Cap algo supports min-dark fill and can customise venues on a client-by-client preference.”
Eric Noll, CEO and president of Convergex, added: "Convergex has a broad offering of algorithms that are designed to increase flexibility while addressing cost, timing, performance, transparency, and market structure requirements."
"Our new Small Cap algorithm was developed to complement our existing suite of algos and to fill a void in the small cap algo space."
According to Convergex, Small Cap rests completely hidden in over 15 alternative trading systems and is able to exit the market when it ‘senses’ that it is signalling its presence in the market place.
The algorithm will then return to the market when it determines that it is advisable to re-engage.
Meanwhile, block executions are continuously analysed for the potential execution of conditional orders.
The new offering brings unique features including the ‘Shot Clock’, which strategically takes liquidity from lit and dark markets, along with Convergex's proprietary fair price model.
Convergex confirmed in a statement on the launch that traders can set the Shot Clock to take liquidity for each desired name at time intervals tailored to their specific preference.
“In essence, the Shot Clock feature allows traders to have full control to replicate the manual workflow they are currently using to trade small cap stocks.”
“In addition, executions are regulated by Convergex's proprietary fair price model that enables traders to source as much liquidity as possible in less liquid names while minimising impact in the market place.”
“Finally, the Small Cap algo supports min-dark fill and can customise venues on a client-by-client preference.”
Eric Noll, CEO and president of Convergex, added: "Convergex has a broad offering of algorithms that are designed to increase flexibility while addressing cost, timing, performance, transparency, and market structure requirements."
"Our new Small Cap algorithm was developed to complement our existing suite of algos and to fill a void in the small cap algo space."
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