FlexTrade Systems, a leader in multi-asset algorithmic execution management systems, today announced that Thomas Weisel Partners will deploy its new FlexPTS (portfolio trade scheduler) trading solution, which enables users to determine the best trading trajectory for their portfolios while minimizing market-impact cost and the risk of underperforming benchmarks.
Utilizing state of the art optimization technology, FlexPTS establishes the optimal portfolio trading schedule weighing all the available data, such as user inputs, risk factor correlations, implied volatility, the estimated market impact cost, and the trader's short-term alpha goals. While the system initially employs its own cost model, as well as the highly regarded short-term equity risk models from Northfield Information Services, FlexPTS is adaptable to any cost and risk models in use today.
According to Robert Redfield, Managing Director, Head of Portfolio Trading at Thomas Weisel Partners, FlexPTS couldn't have come at a better time. "Many of the schedulers available today have pre-set risk and cost models, and primarily handle pre-trading strategies on a single stock basis," said Redfield. "With FlexPTS, however, we now have the ability to develop the optimal pre-trade schedule for whole portfolios while using our own risk and cost models."
"Pre-trade planning on the portfolio level has always been a challenge in the industry," said Vijay Kedia, president and CEO of FlexTrade Systems. "FlexPTS not only enables users to optimize their pre-trade schedules, but also allows real-time schedule adjustments due to its extremely fast computation. This is another example of advanced capabilities bundled with our FlexTRADER EMS, the leading broker-neutral trading platform in the world."
Other features available through FlexPTS include:
- Optimization for Implementation Short Fall or Market on Close
- Determining the ideal start and end time for the trade
- Generation of trading schedules for part of a day or multiple days
- Support for portfolio and industry cash constraints as well as general linear constraints
- Maximum trading participation within specified time frames