ITG ADDS IMPLEMENTATION SHORTFALL ALGORITHM FOR TRADING IN EUROPE

Posted April 22, 2009

NEW YORK – Agency broker and financial technology firm Investment Technology Group has added Dynamic Implementation Shortfall (Dynamic IS) to the ITG Algorithms suite of trading tools in Europe. This list-based algorithm is designed for portfolio and quantitative traders whose main objective is to minimize implementation shortfall and manage risk while optimizing their entire portfolio, especially in volatile conditions.

“Portfolio managers are under increasing pressure to maintain balance in their portfolio while avoiding risk,” says Rob Boardman, Head of Electronic Trading at ITG in Europe. “ITG’s Dynamic IS algorithm helps clients reduce the volatility in an unexecuted list in real-time by adjusting parameters to meet their investment strategy. In today’s marketplace, managing risk has never been more important.”

Dynamic IS trades opportunistically, allowing traders to control, in real time, risk exposure, cash balance, sector neutrality, time horizon and speed of execution. Dynamic IS adjusts to real-time liquidity and market conditions and trades in both lit and dark venues.

Dynamic IS was introduced in the US in 2007 and has been specifically developed for US and European equities. Traders can access Dynamic IS via ITG’s execution management system Triton and other third-party platforms.