Mostly… fixed income and cross product eTrading

May 8, 2007

What’s that algo doing?

Filed under: Algos, etrading — holky @ 5:19 am

Link to the FT mandate panel discussion about the uptake of algorithmic trading, and the lack of education holding back implementation of algos.

  • General agreement that at present algos are tactical – to build and trade out of a position over a day or so, rather than algos to make long term asset allocation and run stock positions.  – Is the next wave to be more about long term decision making?
  • Cliff Warner (London & Capital) says the job of the buy-side desk is to maintain the beta, to mitigate the risk and therefore to get me the best price on the market, whereas the alpha is generated from his fund managers. – thus algorithms are perceived a risk to buyside execution desk
  • Mention of using FIX for algo’s. – still work to do
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