Source: BNY ConvergEx
BNY ConvergEx Group, a leading provider of global agency brokerage and investment technology solutions, today announced the launch of TOPx, its new transition optimization algorithm.
TOPx will enable BNY Global Transition Management to generate customized execution strategies that align with the investment objectives of a client's portfolio to better protect the value of assets during changes in investment strategy.
TOPx is designed to minimize implementation shortfall by focusing on the trade-off between market impact and timing risk by simultaneously identifying the optimal trading schedule for each stock in the portfolio. As the trading day unfolds and trading conditions change, TOPx continually re-optimizes the trading schedule of each individual stock to minimize the overall transition cost. By dynamically monitoring market depth and comparing real time pricing with predicted contributions to tracking error, TOPx produces the most efficient trade schedule for each security.
The addition of TOPx significantly strengthens the BNY Global Transition Management product set. TOPx will be used in tandem with the advanced transition analytic tools and comprehensive hedging strategies that BNY GTM already employs to form a risk management platform dedicated to ensuring the value of a client's assets during the transition process.
Joseph M. Velli, Chairman and Chief Executive Officer of BNY ConvergEx Group, stated, "ConvergEx was launched a year ago to be a fast-moving and nimble trading and technology firm that creates investment technology solutions that truly add value for our clients. TOPx, which is yet another of the sophisticated tools designed and built by our Financial Engineering and Advanced Trading Solutions (FEATS) team, continues with that commitment through its singular ability to minimize risk. Adding TOPx to the robust suite of solutions that BNY Global Transition Management already utilizes will enhance its ability to protect the value of clients' assets during the transition process."
"We view our role as a transition manager to be integral to the investment process of asset owners. Controlling risk during the transition period has direct implications on the investment returns of our clients. TOPx will allow us to create a precise trading strategy that will match the unique risk characteristics of each individual portfolio and allow clients to fully capture the value of their investment decision," stated Kal Bassily, CFA, managing director and global head of BNY Global Transition Management.