arm of Fidelity InvestmentsR, today announced that it has enhanced the
quantitative modeling capabilities of its portfolio trading operation.
The integration of new software, called a kdb/tick application, will help
Fidelity Capital Markets to enhance trading efficiencies by simultaneously
capturing and analyzing streaming equities data from multiple sources,
while archiving information for historical analysis. Historical and
real-time data are available in a single location and can be extracted for
use in real-time trading models, or to refine existing models or back-test
The kdb/tick application was developed by Kx Systems. Portfolio trading, which accounts for up to 37 percent of the daily trading volume on the New York Stock Exchange1, is the coordinated or simultaneous purchase and/or sale of a basket of securities. Portfolio trading uses sophisticated technology to allow a large number of orders to be executed in a timely manner and processed with minimal human intervention.
"Portfolio trading has become a critical execution method for many of our
institutional clients, including mutual funds, hedge funds, pension funds
and insurance companies," said Craig C. Messinger, president of Fidelity
Capital Markets. "To help optimize portfolio execution and minimize trading
costs based on our clients' instructions, we continue to invest
significantly in our portfolio trading capabilities. By combining
state-of-the-art trading technology with the market intelligence of our
traders, we are able to consistently deliver superior performance to our
Based in New Jersey, Fidelity Capital Markets' portfolio trading operation
is comprised of eight traders, with average portfolio trading experience of
more than 10 years. Additionally, the group has a four person quantitative
team that continually refines models and discusses strategies with clients.
"Our portfolio trading philosophy centers around three core themes: performance, service and technology," Messinger said. "Trading has evolved
so that quantitative tools and technology are instrumental to achieving performance. Enhancing our quantitative models with the integration of the
new kdb/tick application will help us more efficiently trade the easier
orders, while allowing our traders to focus on the orders where their
trading judgment can add the most value."