NYSE ROLLS OUT DEEP VALUE ALGORITHMS

Posted May 21, 2009

NEW YORK – NYSE Euronext has completed its rollout of the first phase of more than 20 execution algorithms provided by Deep Value Inc., adding to its floor-broker algorithm initiative begun in July 2008.

“Deep Value brings a highly innovative approach to algorithmic trading,” says Michael Rutigliano, Vice President-Broker Liaison, NYSE Euronext. “Designed in collaboration with floor brokers, this initial suite of Deep Value algorithms introduces the concept of microstrategies: sophisticated quoting and execution strategies that automate the rapid and intuitive characteristics found in the trading tactics of floor brokers. These customized strategies, designed exclusively for floor brokers, strengthen brokers’ automated abilities, enable the brokers to engage in sophisticated new behaviors to deliver performance, seek and attract dark and block-sized liquidity, and provide significant price improvement. This is yet another step in the Exchanges’ ongoing commitment to provide customers who utilize floor brokers with richer and more diverse execution choices.”

With the rollout, Deep Value servers were installed in NYSE Euronext data centers, directly using NYSE Technologies’ Super Feed market data to minimize latency and maximizing the value of the algorithms to floor brokers and their customers.

“These unusual times in the world economies and US markets have created a compelling need for human judgment and experience in the trading function. Market fragmentation and the millisecond timescales of market operation, on the other hand, demand good automation,” says Harish Devarajan, Managing Director of Deep Value. “Where previously customers could essentially only choose one or the other, we are now providing an array of sophisticated algorithms and narrower computer-driven tactics that brokers can use as automated assistants to serve their customers better.”

All Deep Value strategies trade at parity, providing brokers the continuing ability to match on every trade. The algorithms are customizable and enable brokers to use their current execution and quoting strategies simultaneously. All strategies compete with the National Best Bid and Offer and are Regulation NMS compliant.