Pipeline Trading Systems today announced the introduction of Pipeline PowerPlay, a solution for buy-side traders challenged with the problem of executing large orders in fragmented volatile markets.
"The volatility of today's markets requires an unprecedented level of control to successfully drive large orders to completion," said Fred Federspiel, Pipeline's President. "Pipeline's PowerPlay offers hands-on buy-side traders simple, unique controls over their search for blocks and their algorithmic executions -- all in one, easy to use tool that preserves the integrity of the trader's blotter."
Utilizing a combination of proprietary technologies, PowerPlay traders can control the simultaneous execution of multiple large orders from a single window. PowerPlay eliminates the information leakage that results from small, probing executions that permeate today's volatile markets. Natural block trades are controlled through Pipeline's unique Contra Targeting(TM) encryption technology, which enables large contras to meet without the blotter exposure of other block execution systems.
"PowerPlay traders manage the block search by 'pushing' information only to pre-qualified contras, and only when they believe the time is right," said Michael Hayes, VP Sales and Client Services. "Unlike other matching systems, there is no blotter scraping, or automatic centralization of traders' intentions, and no dissemination of blotter information throughout the day."
Through the same PowerPlay user interface, traders can control a multi-vendor algorithmic execution strategy accessing forty-three liquidity pools while employing the advantage of proprietary predictive switching technology only available in Pipeline's Algorithm Switching Engine(TM). "Fragmentation and volatility challenge the effectiveness of any single algorithmic trading strategy," said Federspiel. "With split-second changes in market conditions, traders can use our tool to select the right algorithm for the moment while avoiding pattern detection."
"No other provider offers buy-side traders this degree of control over algorithm strategies," said Henri Waelbroeck, Ph.D., Director of Research. "Traders can instantly start, stop, speed up, slow down, or take everything at a given price point -- while the Switching Engine continually predicts and selects which vendor algorithm will deliver the best execution. This approach enables our clients to outperform any single algorithm."
Pipeline PowerPlay is available now to buy-side firms, and Contra Targeting will be activated for live trading in March. Initial users of the new technology indicate consistently better-than-anticipated implementation shortfalls while executing orders of several thousand to several million shares across stocks of all capitalization levels.