ConvergEx Group Rolls Out New Premarket Trading Algorithm

New York - 27 February 2013

ConvergEx Group, a leading technology company, today announced that it is now offering a new premarket trading algorithm that allows customers to capture liquidity outside of traditional market hours. This is particularly valuable during earnings seasons or during market moving news when traders are more frequently looking to buy or sell positions before the market open.

“Premarket trading is highly complicated. Unlike normal market hours, liquidity tends to be sparse, prices can be less rational and certain orders can cause major movements,” said Scott Daspin, managing director in the Global Electronic Execution group at ConvergEx. “We have created an algorithm that addresses these complexities and effectively trades in the high volatility and thin liquidity that characterizes premarket hours.”

The algorithm was developed using ConvergEx’s Automated Testing Facility, which rigorously back-tested over 20,000 different trading scenarios using years of pre-market trading data. These meticulous regressions allow ConvergEx to ensure the algorithm functions as it should in any number of market conditions and allows the company to roll out reliable products much faster than those testing code using older QA.

“Traders have generally had a difficult time executing efficiently during premarket hours because, until now, it could only be done manually. Now they have an intelligent tool at their disposal that automates an otherwise labor intensive and tricky process,” said Gary Ardell, head of the financial engineering and advanced trading solutions group at ConvergEx. “This new algorithm is another example of ConvergEx’s commitment to provide unique solutions for our customers’ trading challenges.”

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