ESP and Vie complete electronic algorithm routing network integration
20 October 2004 | 409 views | 0
Source: Electronic Specialist
Electronic Specialist (ESP), announced today that it has completed the integration of its Electronic Algorithm Routing Network (EARN) with Vie Securities' suite of VIPER algorithms.
ESP's EARN provides buy-side institutions with access to more than 30 strategies from many of the world's largest algorithmic trading providers, directly and anonymously, through one seamless gateway.
The EARN portal, available through ESP's Global Direct Market Access Network, features such strategies as VWAP, TWAP, TVOL, Arrival Price, Implementation Shortfall, Smart Order Routing, Pairs Trading, and a variety of other algorithmic strategies that are unique to each participating broker in the global network.
"The addition of Vie's VIPER algorithmic suite to EARN brings a number of unique strategies that will add value to our institutional customers who are looking to achieve better alpha and smarter execution of their orders," states Scott Kurland, senior managing director of ESP.
Some of the unique VIPER algorithms available through EARN include VIEESP, a statistical prediction algorithm which employs a short-term, predictive model that formulates expectations of the price and volume of a stock in the next one to three minutes, and INLINE, a mode which works best for stocks with high alpha decay, that participates at a higher percentage of non-block volume by being less patient for strong trade signals.
Brian Devereux, vice president of sales at Vie Securities, states, "We are enthusiastic about the opportunity to provide ESP's institutional clients with our VIPER algorithms, and feel that there is tremendous value in being able to provide institutional clients with an alternative set of trading models that they can now access anonymously."
EARN allows institutions to ensure their anonymity when sending large order blocks or lists to multiple strategy servers. The portal can minimize market impact by allowing clients to spread orders across a number of providers and algorithms.
EARN is currently available through a number of application trading providers who are integrated with ESP's network. "The EARN portal from ESP dramatically improves our institutional clients' ability to trade size in the market, with minimal market impact," according to Steve Sierszulski, chief executive officer of Sterling Technologies, Inc.
Kurland added, "By offering a wide variety of algorithms through a single gateway, we facilitate the brokers' ability to constantly innovate, providing new and unique functionality, which ultimately benefits our clients."