In The Media

  • Global Trading | December 18, 2017

    AI and machine learning can enable traders to manage trading risks better and enhance investor returns.

    If you believe that variety is the spice of life, then maybe a career in electronic trading is for you. At last count, traders may choose from more than 1,600 broker algorithms and strategies, each with its own unique fingerprint. Despite this vast landscape of trading strategies, traders don’t necessarily see variety as a good thing.

    A study earlier this year by Greenwich Associates found that only 7% of buy-side traders feel completely satisfied with the standard algorithms offered by their brokers. It is this discontent, along with advances in research and technology that present an opportunity to reinvent algorithms.

    At ITG, we’ve been developing technology for self-directed trading algorithms since 1998, and are beginning to incorporate Artificial Intelligence (AI) into our algo suite following two years of extensive research. Given the growing popularity of the topic, the following is a brief overview of the evolving AI landscape and its growing application to the financial industry, particularly equity execution.

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  • What’s old is new again in algorithms.

    ITG has just rolled out the newest iteration of its Dark aggregation algorithm. The new twist is that this new version is not only designed to maximize dark block liquidity capture but also grab as much natural liquidity as it can. The firm says this upgraded Dark aggregator now snags 82% of ALL available midpoint U.S. block volume.

    In a nutshell, Dark provides broad access to natural liquidity using an unbiased routing optimization across all major dark pools, and uses advanced segmentation strategies to find quality fills that minimize information leakage.

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  • Unintended consequences of Mifid II could undermine the broader benefits that the ETF market stands to gain from increased transparency around trading and costs, according to Simon Barriball, head of ETP Trading in Europe for ITG.

    The technology company for some time has been assessing the practical implications of Mifid II on trading, given its history of enabling trading through the Posit and Posit Alert solutions used in markets globally. ITG’s technology addresses liquidity, execution, analytics and workflow on trading desks.

    “ETFs are becoming more than just passives,” notes Barriball, outlining how the role of exchange traded products is evolving from just being a matter of passive versus active choice. Increasingly it is about cost issues per se, whether the investment is being actively or passively managed.

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  • Traders on the buy-side have been increasing their efforts to gain knowledge and understanding of the algorithms they use in order to satisfy best execution requirements under MiFID II.

    Speaking at The TRADE’s MiFID II Checklist event in London this week, a panel discussed how the use of algorithms has shifted ahead of MiFID II.

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  • Traders Magazine | September 20, 2017

    WHEEL. OF. ALGOS.

    Yep, agency brokerage and technology company ITG has rolled out an approach where various broker dealer algorithms are evaluated, normalized and eventually rewarded for their performance.

    How?

    Enter the Algo Wheel. Soft launched by ITG late in 2016, the Algo Wheel is a broker-neutral tool for allocating trades among your broker algorithms in an unbiased, systematic fashion, which allows a buy-side trader to establish a quantifiable method for evaluating and rewarding brokers for good execution performance.

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