UBS Investment Bank announced today that it has launched a new suite of intuitive algorithms and tactical order types for trading US Listed Options.
Its new offering will be an enhancement to the existing suite, enabling clients to more effectively manage orders and better navigate the rapidly evolving trading market.
This expanded offering builds on UBS's market expertise in US Listed Options. The bank was one of the first brokers to offer algorithmic trading strategies for options over three years ago. The offering is now being expanded to include an array of more nuanced liquidity and volume-sensitive order types. One addition is UBS Options TapNow, an urgent liquidity-seeking strategy that is a variation of the firm's award-winning cash equities algorithm, UBS Tap.
"In response to the significant increase in growth and sophistication of the market, as well as our clients' requests for more efficient ways to route their orders, we developed these new options algorithms," said Owain Self, Global Head of Algorithmic Trading for UBS. "We are excited to expand our options offering to include a diverse array of new order types that will enhance our clients' trading performance."
These algorithmic strategies and tactical order types are available on UBS's own Pinpoint execution management system, and are live and being deployed with over a dozen third party OMS and EMS platforms that already carry UBS US Listed Options algorithms.
The seven new order types include:
1. Options TapNow: Seeks to minimize market impact while intelligently seeking aggressive execution up to a limit price.
2. Options Premium Trigger: Allows you to place an options order that is relative to the price of the option premium, rather than the underlying security.
3. Options Float: Allows you to float your order in the market pegged to the passive side of the spread.
4. Options Hidden: Holds your order off the exchange until your desired price is available.
5. Sweep Display: Aggressively sweeps at the market until the order is filled or no longer available, posting on multiple markets simultaneously.
6. Sweep No Display: Aggressively sweeps at the market until filled or no longer available. Unmarketable orders are held back until the displayed price is in your limit.
7. Sweep IOC: Executes a wave of immediate or cancel orders across multiple markets simultaneously, cancelling any residual unfilled shares.
UBS's existing suite of Direct Market Access order types and algorithms, including Options TWAP and Options Delta Adjust, will continue to be available, as well.