Will Also Utilize FlexSpread Pairs Algo and FlexOPT For Equity Options Volatility Trading
FlexTrade Systems, Inc., a global leader in broker-neutral, multi-asset trading systems, today announced that Brazilian investment management firm NEO Investimentos has deployed its award-winning EMS, FlexTRADER.
According to Marcelo Cabral, Founding Partner of NEO Investimentos, FlexTRADER’s multi-broker, multi-asset, multi-region capability combined with a sophisticated trading strategies template were the key factors in the firm’s decision. “We wanted a platform that would give us the coverage we wanted while also allowing us to develop and implement our own algos and trading strategies,” said Cabral. “FlexTRADER’s rules-based engine allowed us to do that while also facilitating a seamless workflow with our other systems.”
“We are delighted that NEO Investimentos has chosen FlexTRADER as its execution management system,” said Vijay Kedia, President and CEO of FlexTrade. “With the explosion of electronic trading in Latin America, it has become essential for asset managers such as NEO Investimentos to use EMS platforms to facilitate their trades.”
As part of the deployment, NEO Investimentos will also utilize FlexTrade’s pairs algorithm suite called FlexSpread.
“While we were planning on writing our own pairs algos, we reviewed FlexSpread and found it was perfect for our needs in trading Brazilian equities,” said Cabral. “So we decided to have it included with the overall package.”
Available through FlexTRADER or as a stand-alone application, FlexSpread’s unique functionality also supports cross-currency pairs and spreads, as well as multi-asset trades such as futures versus ETFs.
Trading options available through FlexSpread include:
- A pairs trading strategy where one sells/shorts one security and buys another in equal dollar amounts, or in a dollar ratio, subject to a price relationship.
- Risk arbitrage to trade an announced takeover deal, including cross currency deals.
- Cross currency equity pair trades where a trader executes a pair trade in two securities denominated in different currencies.
- Ability for the trader to specify separate brokers for buy and sell/short legs of the trade.
The final piece of the deployment is FlexOPT, which enables users to minimize market impact, transaction costs, and risk exposure for algorithmic options trading. NEO Investimentos chose FlexOPT for its integrated algorithmic trading and risk management capabilities.