Algorithmic Trading

(redirected from Black Box Trading)

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 ?
Shortly they are also coming up with membership for MT4/5, Spider IRIS, Trade Station, custom black box trading systems written in Java, .
This has led former Treasury minister Lord Myners to blame Black Box trading for the increased volatility and to label the practice "corrosive".
Despite the global financial crisis, the fundamental drivers for the adoption of low latency, namely the fragmentation of liquidity across multiple venues and the inexorable advance of black box trading, continue to exist," said Rik Turner, a senior analyst of financial services technology at Datamonitor.
In the margins, a few physicist-financiers are working on so-called black box trading schemes (see sidebar).
Black box trading programs run by institutions are ruling the markets as well as mega money hedge funds.
Orc Liquidator is an event driven / black box trading system that allows the rapid deployment of custom trading strategies at a processing speed of up to 20,000 orders per second with sub- millisecond latency.
It can be used independently as a stand-alone, black box trading solution, or in tandem with Portware Enterprise to address specific algorithmic development and trading requirements.
The discussion will lead into panels about the opportunities and challenges in Black Box trading as well as Order Management Systems.
Additionally, iServer offers firms the flexibility of a black box trading system, allowing them to be self-sufficient for both execution and measurement from a single solution should they choose.
BT Radianz developed Radianz Ultra Access to provide highly resilient, extremely low latency network connections in response to the growing use of algorithmic and black box trading strategies, including direct market access (DMA) by broker-dealers, asset managers, prime brokers and hedge funds.
NET and COM for black box trading and full integration with in-house order- and risk-management systems.
NET order management system and direct market access software platform for regional and tier 1 broker dealers, investment banks and equity specialists and thinkpipesFIX, a platform enabling black box trading, automated trade routing and execution reporting.