âFor moving large orders with minimal market impact, dark liquidity is simply invaluable. However, portfolio traders, with their need to precisely manage risk and cash balances, have been virtually excluded from leveraging these dark pools. The timing and velocity of the dark pool fills is simply too random for their heterogeneous baskets,â said Scott Daspin, managing director in the Electronic Execution group at ConvergEx. âBut with Spectrum we are now giving them the power to operate in the dark.â
âSpectrum is driven by ConvergExâs stateâofâtheâart risk management engine and works by making thousands of order placement decisions every second. It optimizes execution performance by providing midpoint or better pricing, while simultaneously monitoring risk management and cash balance parameters,â said Gary Ardell, head of the Financial Engineering & Advanced Trading Solutions group at ConvergEx. âSpectrum represents truly innovative technology put to use in the pursuit of superior performance.â
The strategy offers three separate cash objective options based upon customersâ preferred level of cash constraints. It supports three distinct settings for risk management and is fullyâconfigurable to meet customersâ selected level of risk aversion.
Spectrumâs proprietary technology and methodology also offer a sophisticated, webâbased performance interface that tracks user performance throughout the life cycle of each execution. It empowers both lowâtouch and highâtouch users with the ability to dynamically modify portfolio executions throughout the trading day.
This is the first in a series of portfolio algorithms ConvergEx plans to roll out.