Japan's Mitsubishi UFJ Securities (MUS) has completed the first phase roll-out of a new algorithmic execution service which is based on technology developed by UK vendor Fidessa.
The Japanese firm has implemented Fidessa's algorithmic trading platform, BlueBox, which is marketed as a cost effective option for brokers entering the algorithmic trading arena. The platform provides access to pre-built, industry standard algorithmic trading strategies along with a toolkit that enables clients to build propriety models. The package also includes market data and global exchange connectivity.
Says Yoshiki Shinchou, general manager, research and development division, global markets business, MUS: "We want to inject some originality into our algorithmic services so the fact that the BlueBox framework enables us to develop and deploy our own proprietary algorithms, as well as out-of-the-box strategies, means that we can provide our clients with some truly unique services."
Following the initial roll out of its new service Mitsubishi now provides clients with trade weighted average price (Twap) and short sell strategies, including a combination of both as a trader-intermediate execution. MUS says it will add a volume-weighted average price (Vwap) model and volume-in-line in the next phase of roll out.
MUS says that in the short term it expects demand to come from off-shore buy-side firms, particularly hedge funds whilst in the medium term the firm hopes to attract domestic asset managers.
Last year Mitsubishi reported plans to install a tick capture platform based on technology from Aleri and Sybase to support algorithmic and strategy trading initiatives at its operations in London.