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".
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.
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.
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.
NET and COM for black box trading and full integration with in-house order- and risk-management systems.
In addition, the TIM now enables trade ideas to be sent directly into buy side black box trading systems used by quantitative or algorithmic money managers.
The LOMS Open Strategy Container is designed from the ground up to accelerate high frequency algorithmic trading applications, providing end users with infrastructure to develop and deploy black box trading strategies.
com), which markets the Trade Idea Monitor (TIM), noted, "A growing number of new buy side participants are quantitative trading firms, attracted to the now sizeable database of ideas that can be analyzed by black box trading systems.
The new Comtex Black Box Trading CustomWire transforms real-time news feeds into actionable data for instant use with algorithmic trading, quantitative analysis and execution management models," said Chip Brian, Comtex's President and CEO.
FTEN provides Access, Speed and Control via the VelocityXpress[TM] (VX[TM]) extremely low latency black box trading gateway, the RiskXposure[TM] (RX[TM]) real-time enterprise risk-management system which provides a dashboard view of all transactions and the TradeXaminer[TM] (TX[TM]) compliance and surveillance system.