Predatory traders beware – Cowen is releasing a new algorithm designed to stymie your intentions of disrupting block trades, front-running and thwarting best execution.
Cowen, a venue neutral provider of electronic trading solutions, added the CLEAN SEEK algorithm as clients have demanded more electronic protection from those market participants who take advantage of the current market structure.
John Cosenza, co-head of the Cowen / ATM group, said that CLEAN SEEK is the first of several additional new products the company plans to release this fall after having spent the past year developing transparent solutions to address client frustrations related to the current market structure for electronic trading.
“We designed CLEAN SEEK to help institutional customers generate alpha and combat interacting with potential predatory market participants within dark pools on their low alpha or low urgency to trade orders,” Cosenza said. “As the marketplace moves to greater transparency, it is important for traders to capture the value of increased visibility and better information within the electronic products they use. Our CLEAN SEEK product represents both the option and optimization of ‘quality over quantity.'”
Another new plus for those clients who use CLEAN SEEK or the previously released BEST algorithm is the addition or another popular trading venue to which their orders can be routed – IEX. Other venues can be selected as well.
“Based upon the combination of client interest and nearly a year of empirical data at IEX, we are excited to provide customers the ability to customize algorithmic strategies for a venue that demonstrates strong execution quality,” Cosenza said.
Cowen/ATM supports the fact that market transparency is critically needed for fundamental buyers and sellers of equity and equity derivatives. Last year Cowen/ATM revealed their BEST algorithm, which helps the buyside find liquidity in tough-to-trade small- and mid-cap securities, especially during the middle of the trading session otherwise known as ‘the dead zone.’ BEST incorporates switching engine technology, predictive pricing models and anti-gaming logic to dynamically adjust strategy tactics and parameters in real-time as market conditions and stock price movement change.
