Algorithmic Trading


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Algorithmic Trading

A computerized trading system that institutional investors use to make large transactions in securities while affecting their prices as little as possible. Algorithmic trading uses complicated mathematical formulas to identify the ideal times to buy and sell securities in large batches. Usually, algorithmic trading involves dividing trading a large number of securities as smaller groups so as not to cause panic buying or panic selling. Algorithmic trading contrasts with program trading, which is also a computerized system but does not attempt to minimize price changes. Algorithmic trading is also called black box trading.
References in periodicals archive ?
JP Morgan, UBS and Bank of America Merrill Lynch round out the 2014 Greenwich Share Leaders in US Equity Algorithmic Trading, tied with market penetration scores of 48%--51%.
Instinet Incorporated today announced the launch of MAKE , the latest addition to its Execution Experts algorithmic trading suite.
As a result, institutional clients of the France-based investment bank will be afforded direct market access and algorithmic trading capabilities to the Chilean domestic market, the Santiago Stock Exchange.
FlexTrade Systems offers broker-neutral algorithmic trading platforms for equities, foreign exchange and listed derivatives.
MAI is built around algorithmic trading technology, and gives ASIC the ability to analyse trade data for patterns and relationships.
The new rules, expected next month, will focus on banks' proprietary, high frequency and algorithmic trading. They will not cover banks' market-making activities.
Morgan Cazenove, where he was a vice president in the bank's sales and algorithmic trading division.
ITG also added to its algorithmic trading capabilities in Brazilian and Mexican equities, launching versions of the ITG Raider Algorithm customized for each market.
Success in the event-based algorithmic trading space hinges on timely reactions and demands this speed and responsiveness.
Morgan Stanley's electronic trading unit deals with algorithmic trading, direct market access and dark pools.
The addition of options and futures trading tools on Newport 3 builds on the recent launch of Instinet's Options CBX dark pool at the beginning of August and the introduction of US-listed options trading functionality within its algorithmic trading suite and smart order routing technology suite.
BANKING AND CREDIT NEWS-September 6, 2013--Citi launches algorithmic trading, DMA for Moscow Exchange clients(C)2013 M2 COMMUNICATIONS http://www.m2.com

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