Nyse Euronext (NYX) has completed the roll out of the first phase of more than 20 execution algorithms provided by Deep Value Inc., adding to its already highly successful floor broker algorithm initiative.
Since the program's inception in July 2008, trading floor brokers have utilized algorithmic execution strategies directly from their hand-held devices to supplement their high-touch service with uniquely engineered automation. All algo strategies are available for use by floor brokers trading NYSE- and NYSE Amex-listed issues.
"Deep Value brings a highly innovative approach to algorithmic trading. Designed in collaboration with floor brokers, this initial suite of Deep Value algorithms introduces the concept of microstrategiesTM: sophisticated quoting and execution strategies that automate the rapid and intuitive characteristics found in the trading tactics of floor brokers," said Michael Rutigliano, Vice President-Broker Liaison, NYSE Euronext. "These customized strategies, designed exclusively for floor brokers, strengthen brokers' automated abilities, enable the brokers to engage in sophisticated new behaviors to deliver performance, seek and attract dark and block-sized liquidity, and provide significant price improvement. This is yet another step in the Exchanges' ongoing commitment to provide customers who utilize floor brokers with richer and more diverse execution choices."
"These unusual times in the world economies and U.S. markets have created a compelling need for human judgment and experience in the trading function. Market fragmentation and the millisecond timescales of market operation, on the other hand, demand good automation," said Harish Devarajan, Managing Director of Deep Value. "Where previously customers could essentially only choose one or the other, we are now providing an array of sophisticated algorithms and narrower computer-driven tactics that brokers can use as automated assistants to serve their customers better."
The NYSE last week completed the phase I release floor wide. Deep Value servers are co-located in NYSE Euronext's data centers and directly utilize NYSE Technologies' Super Feed market data to minimize latency and maximize the value of the algorithms to the floor broker community and their customers. Deep Value's fault-tolerant technology handles the exchange-scale algorithmic loads via a NYSE-dedicated grid of commodity servers. All Deep Value strategies trade at parity, providing brokers the continuing ability to match on every trade. The algorithms are customizable and enable brokers to use their current execution and quoting strategies simultaneously. All strategies compete with the National Best Bid and Offer and are Regulation NMS compliant.