UBS has launched an algorithmic trading strategy for illiquid securities that it says will direct users to the best liquidity sources in unpredictable or low-volume market conditions.
UBS Swoop is available in all major financial markets around the world but can be tailored to suit local regulations and structures, says the bank.
“The availability of equity liquidity is never a given, but for some securities it is even more elusive,” said Owain Self, global head of algorithmic trading at UBS. “Traditional algorithms were built to trade on a schedule, which means they are not suited to appropriately capture unanticipated bursts of liquidity. We designed Swoop to wait, watch and intelligently act upon those unpredictable moments.”
By Neil Ainger