Instinet Incorporated today announced the launch of MAKE™, the latest addition to its Execution Experts® algorithmic trading suite.
MAKE is a sophisticated, next generation strategy for passive side trading, giving institutional traders access to the same type of advanced liquidity providing tactics used by market makers. Using historical information, recent trading patterns and real-time market data, MAKE sizes and distributes child orders at multiple price levels and across destinations, controlling adverse and negative selection while reducing exposure to signaling, gaming, and predatory techniques.
MAKE’s advanced tactics are controlled by a simple yet highly-customizable control set, allowing users to specify a range of different styles of liquidity providing, from “patient” to “urgent”. At lower urgency levels, Instinet’s signal-driven FADE logic will be more sensitive to potentially adverse market conditions, and will briefly pause or slow trading to reduce adverse selection. At higher urgency levels, with more emphasis on minimizing negative selection, child orders will tend to be larger and more frequent.
MAKE is particularly well suited for low information trades where opportunity cost is less important than impact reduction—particularly at low or moderate urgency levels—or large orders, where limiting information leakage and potential signaling is paramount. At higher urgency levels, it can also be used effectively for trades with higher opportunity costs, trading larger volumes while remaining passively priced.
MAKE is available in all 37 markets across the Americas, EMEA and Asia-Pacific in which Instinet agency brokers support algorithmic trading. By leveraging the Experts’ global framework, MAKE offers a consistent strategy experience worldwide while still retaining the benefits of tactics tuned for specific markets and market structure. In addition, due to the Experts’ modular architecture, the advanced liquidity-providing logic used within MAKE is also leveraged by other strategies, improving execution for passive trading across the entire Experts suite.
Commenting on the launch, John Comerford, Head of Global Trading Research, said: “MAKE delivers true next generation market making techniques while still providing the controls and limits necessary for institutional trading. For users seeking to better manage their passive side trading, MAKE provides the opportunity to realize significant spread savings while simultaneously reducing the costs and risks associated with liquidity providing.”