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ITG launches Flexible Participation Algorithm across Asia

Investment Technology Group (ITG), a leading provider of technology-based equity trading and transaction research, today announced the launch of the Flexible Participation Algorithm for Asia Pacific. This is an advanced, opportunistic algorithm customised for Asia, enabling traders to manage fast-moving markets and pursue Best Execution. The firm already provides structured algorithms based on historic trading profiles to a wide range of buyside firms across Asia Pacific.

More efficient trading workflow

Traders can use Flexible Participation to manage multiple orders simultaneously across Asian markets by pre-setting trading instructions and alerts. For example, an order can be set to complete as soon as a favourable price level is reached to take advantage of available liquidity.
Flexible Participation enables rapid response to market moves and automated execution at designated price levels. This helps reduce the inefficiencies and delay costs that can arise when traders need to constantly monitor multiple orders, calculate the effects of price changes and manually adjust and execute the trades.

Best execution in volatile markets

Flexible Participation can also be used to trade more or less aggressively, depending on whether the stock is moving towards or away from the desired price. This is particularly useful in volatile markets, where rapid price movements can result in significantly higher costs and traders must complete orders at the best price possible. The algorithm can be set to trade against a wide variety of market and trading benchmarks, and is particularly suited to an Implementation Shortfall benchmark*, widely regarded as a key indicator of Best Execution.

Gabriel Butler, Head of Sales & Trading for ITG in Hong Kong, comments: “Executing across Asian markets presents many challenges for the buyside trader and costs can be high. This is even more apparent given current market volatility. Flexible Participation has proven to be a highly successful strategy in other regions, and we have spent significant time and effort customising it for the unique market structures of Asia. As the name suggests, it is highly flexible and responsive, allowing traders to implement strategies with a large number of variables in order to seize liquidity at a price they want. As Best Execution becomes a priority for Asian trading, Flexible Participation will be a key element of the buyside trader’s toolkit.”

A pioneer in algorithmic trading, ITG offers some of the most sophisticated automated strategies globally, all aimed at reducing market impact and improving trading performance. Flexible Participation is also available in North America and Europe. ITG’s Asia Pacific algorithms are currently accessible through ITG’s Triton® execution management system (EMS), and via Portware and a number of other third-party EMS providers.