Leading global market maker Getco today announced the expansion of its GETAlpha suite of algorithmic trading tools to include six new strategies aimed at the needs of institutional investors.
GETAlpha was created to provide institutional investors with a range of trading strategies expressly designed to navigate the complexities of today's multi-venue marketplace.
"The number one issue we hear from institutional investors is a growing concern that their trades are not being managed with the level of care and attention they historically received," said GETCO's Head of Institutional Sales, Chris Amorello. "They believe their executions could be better, but they are at a loss how to improve them with the strategies currently available in the marketplace."
Market makers are optimized to create micro-alpha with every trade. GETAlpha leverages the infrastructure and intelligence of a full-time market maker to add micro-alpha to institutional trading strategies thereby exceeding clients' execution goals.
Chase Lochmiller, Managing Director of Algorithmic Trading added, "Our algorithmic products were specifically designed to take into account the complexities associated with sourcing different venues for liquidity in a highly technical, fast-moving marketplace. These strategies are being fine-tuned to respond to the evolving market on a monthly, weekly and even a daily basis. At GETCO, we understand that the markets move at lightning speed. We provide our customers with algorithmic innovation on a similar time frame."
All GETAlpha strategies are customizable to take into account the unique nature of each of our clients' trading needs. In addition they are designed to provide customers with associated rebates or fees that may be derived from trade executions.
GETAlpha now includes a range of benchmark and liquidity seeking strategies including:
- 1. Volume-Weighted Average Price (VWAP) - Enables investors to achieve a targeted average price during a specified time interval.
- 2. Percentage of Volume - Allows investors to designate volume amounts in order to achieve minimal impact in the markets.
- 3. Time-Weighted Average Price (TWAP) - Facilitates the way investors designate trade intervals over a specific amount of time to evenly distribute the order.
- 4. Optimal Alpha - Uses a proprietary index that realizes the cost of liquidity at various times during a trading day to enable clients to schedule trades.
- 5. Smart Order Router - Enhances trades so clients have liquidity while benefiting from real-time prices. GETCO is able to capture more than 99.5 percent of the quoted prices to further assist clients who are concerned about liquidity versus cost.
- 6. Implementation Shortfall - Creates an opportunity for investors to obtain liquidity more aggressively during the beginning of a trade execution.
- 7. Opportunistic Algorithm - GETAlpha's initial algorithmic offering, launched in June 2011, allows investors to trade by passively posting liquidity, in essence acting as a one-sided market maker. This allows for the vast majority of a customer's order to be executed without crossing the spread.
The GETAlpha suite of execution algorithms is widely available via OMS vendors or direct connection. In addition, GETCO has formed an exclusive partnership with Mismi to provide NYSE floor brokers access to the GETAlpha products through their handheld trading devices. This partnership enables Mismi's customers to choose from different types of vehicles to execute orders and benefit from GETCO's insight to achieve price performance.