Instinet Extends Liquidity Aggregation Technology to Japan VWAP Crossing Platforms

Instinet Extends Liquidity Aggregation Technology to Japan VWAP Crossing Platforms

Click to access Instinet_Launches_Nighthawk_VWAP.pdf

HONG KONG – September 5, 2013 – Instinet Incorporated today announced the introduction of Nighthawk® VWAP, a fully customizable variant of its award-winning Nighthawk algorithm that provides aggregated access to the expanding universe of pre-market VWAP crosses in Japan.
Beginning with Instinet’s launch of JapanCrossingTM in 2001 and more recently with the introduction of similar pools in Japan, VWAP crossing platforms have provided an indispensable source of block liquidity through their anonymous, low market impact models. Including the two pre-market matches offered through JapanCrossing, there are now nine such crosses in the market. The VWAP module of Nighthawk, which executed over $3B (USD) of stock in Japan in Q2 2013, provides an efficient, intelligent way to get aggregated access to these crosses via a single destination.
Clients may send orders to Nighthawk VWAP from 00:00 JST onward. Beginning at 08:19 the algorithm begins cycling through the nine crosses, the last of which runs at 08:55. Matched orders receive an “indicative fill” at the stock’s previous night closing price, and are re-priced to the full day VWAP shortly after the market close at 15:00. During the month of August, clients saw a cross ratio (e.g., the percentage of total order volume completed) of 28% using Nighthawk VWAP.
“Nighthawk VWAP, like all of Instinet’s award-winning liquidity products and technology solutions, is driven by the needs of our clients. Nighthawk’s sophisticated liquidity aggregation gained popularity region-wide because it simplifies an important yet complicated process. We’re excited to extend its functionality to access these new venues,” said Joel Hurewitz, Head of Product Asia-Pacific Product Strategy.
Clients may access Instinet’s Nighthawk VWAP platform from Instinet’s Newport® EMS, through multiple third-party trading systems or via direct FIX connection.
Nighthawk VWAP is the latest Asia-Pacific-specific product to be launched by Instinet, which has seen a significant enhancement of its capabilities in the region over the past nine months. Since becoming the Nomura Group’s equities execution services arm in Hong Kong, Singapore and Australia, Instinet’s market share has increased to 3.1%, 2.9% and 1.7% in those markets, respectively*. Instinet clients are now able to pay for Nomura’s award-winning content in the region via Instinet, as well as leverage the Nomura Group’s entire AEJ equity trading network, which includes 57 sales/trading staff across nine offices**.
“Clients have responded extremely favorably to Instinet’s newly enhanced platform in the region, with the number of active trading accounts more than doubling from January to present,” said Shaun Bramham, CEO, Asia-Pacific. “By marrying Instinet’s electronic trading product set and agency-only liquidity with the content and capabilities of Nomura’s broker dealers, the Nomura Group is today able to provide an equities offering that is without peer.”
* Market share for Q2 2013
** Hong Kong, Singapore and Australia exchange memberships are held by Instinet broker dealers; India, Indonesia, Korea, Malaysia, Taiwan and Thailand exchange memberships are held by Nomura broker dealers.
About Instinet
As the equity execution services arm of the Nomura Group, Instinet Incorporated’s subsidiaries provide independent, agency-only brokerage services to clients throughout the world. Through its advanced suite of electronic trading tools, experienced high-touch trading group and unparalleled access to insightful content and unique agency-only liquidity, Instinet helps institutions lower overall trading costs and ultimately improve investment performance. Over the course of its 40+ year history, Instinet has introduced a range of now industry-standard trading technologies as well as the world’s first major electronic trading venue, one of the first U.S. ECNs and, most recently, the Chi-X businesses. For more information, please visit or follow Instinet on Twitter.
Media Contacts
Mark Dowd
Global Head of Marketing and Communications Phone: +1-212-310-5331
Mobile: +1-201-376-9687

PredictWallStreet pairs real-time quotes with trader sentiment

PredictWallStreet pairs real-time quotes with trader sentiment

Source: PredictWallStreet

PredictWallStreet, the global online stock prediction community, today announced the pairing of real-time stock and index quotes with real-time trader sentiment based on daily polls to facilitate faster data delivery which can result in more powerful intraday trading insights.

Predictions from PredictWallStreet’s online community of thousands of traders and investors are aggregated and processed via proprietary collective intelligence algorithms to produce daily forecasts of stock and index movements.

“While these patented prediction and forecasting technologies are designed to give investors a powerful edge in the market, we continually strive to sharpen that edge,” notes Craig Kaplan, CEO. He adds that “while these forecasts, alone, can be valuable trading tools, combining them with real-time quotes distributed by Interactive Data will enable more insightful trading decisions throughout the day.”

“We are pleased to provide the real-time market data delivery component to PredictWallStreet to support important investment decisions for their subscribers,” said Bill Chambers, Vice President and General Manager for Wealth Solutions at Interactive Data.

Wolverine Execution Services, the agency brokerage affiliate of the large market maker, launched two new algorithms: WEX VWAP and WEX Basket VWAP.

Wolverine Execution Services, the agency brokerage affiliate of the large market maker, launched two new algorithms: WEX VWAP and WEX Basket VWAP.

Both algorithms utilize a logic that seeks to minimize market impact and price slippage. WEX VWAP and Basket VWAP timeframes can be set to as short as five minutes or as long as the entire trading day. They do not require other user-defined parameters and settings, eliminating the need for time-consuming user configurations and inputs.

The VWAP algo works orders using Wolverine’s ‘Best X’ proprietary execution logic to spread trades along a historical volume distribution within a specified time period.

The Basket VWAP algo is designed to work with long/short equity or market neutral baskets. It manages executions for basket or index components using Best X logic and historical volume distributions. When executing long/short baskets this approach strives to keep the basket neutral throughout the execution, the company said in a statement.

Kevin Kernan

“The addition of these new algorithms is in direct response to client requests to marry the proprietary logic of Best X with a VWAP strategy,” said Kevin Kernan, WEX director of product development. “The superior performance our clients have seen from WEX Best X when compared to other arrival price algorithms was a key driver in creating these new algorithms for clients that use a VWAP strategy.”

The algorithms are available via the WEX electronic trading platform or any other FIX-compliant execution or order management system platforms.

For more information on related topics, visit the following channels:

Fewer sell-side broker relationships may become the trend

Fewer sell-side broker relationships may become the trend

The buy-side may enter a phase of fewer sell-side relationships, driven by lower volumes and increased regulatory responsibilities.

Gabe Butler, an executive director of Morgan Stanley in Hong Kong, believes that the industry is approaching a time when the buy-side may move towards a more minimalist approach to its sell-side providers.

“In the last year we’ve seen a number of buy-side shops start to cut down their algo brokers’ list. They feel it might be better if they confine themselves to understanding a smaller number of algo suites more deeply and they partner with the providers who have most money to invest in their algorithms’ performance and customisation.”

In addition, Hong Kong’s Securities and Futures Commission (SFC) is currently in the process of applying more regulation to algorithmic business. One result of is that the buy-side is going to have to attest to understanding the algo offerings of all its counterparties. That is an incentive to trim the list and look for assistance from those sell-side relationships that are maintained.

“Bigger firms tend to do well when markets become more regulated, as they have more scale, experience and can navigate through the additional regulation,” says Butler. “As one of the bigger firms in the market then, additional regulation is not a huge concern to us, but we’re well aware of the effect it has on the rest of the marketplace and on our clients.”

He believes that for an asset manager to stay high on the list for a particular broker has become harder and harder. To keep broker service at a very high level, the buy-side has to maintain their relevance to those brokers and put business their way. Until volumes start seeing some massive upward trajectory, as we saw in 2006/2007, Butler thinks this is the environment will persist.

“We’re definitely seeing a shift from a time that there was a rapid expansion in the number of brokers that were being used, perhaps towards a convergence where a user might use five or six, or cutting back to a list of about that number,” says Butler. “Those firms that are starting out now, they’re also likely to be looking to build to a list of about that size. That number still incentivises the brokers to continue to do their best in helping generate performance.”

A recent illustration of market demand for a bigger roster of sell-side brokers came in Asia after the 2008 bankruptcy of Lehman Brothers, when hedge funds who had previously felt comfortable using one prime broker, started to think that in order to avoid concentration risk, they needed more, preferably at least one from Europe and one North American.

“Now, if a hedge fund is starting out, they might feel they don’t need that many prime brokers, though if they have three, they’ll likely stick with them. We do see a degree of consolidation there and a lessening of the rationale from five years ago that they need at least one US prime broker and one European one.”

So, which sell-side firms will ultimately prevail? Is it necessarily the case that convergence will simply favour large firms? Butler summarises.

“You can be big and that would put you in a position to take advantage, but if there’s convergence, you’d have to service more clients, in an environment where there is still cost pressure with sell-side personnel salaries, and requiring expensive investments in operations and technology. Those firms that can afford to do it, and then actually do spend the money on IT budgets, should be the ones to win, whether or not they are necessarily big or small today.”

High-frequency trading concerns return to the fore

High-frequency trading concerns return to the fore

High-frequency trading has risen to the forefront of hedge fund regulatory concerns, according to a new report.

High-frequency trading concerns return

High-frequency trading concerns return

While the level of regulatory concern remains far from 2011 levels, it has increased since last year, according to the report, which was published yesterday by research firm Tabb Group. The research was based on conversations with 63 head traders of US hedge funds, managing $301 billion in total assets.

The research said: “In light of the public debate and media scrutiny of market structure issues, such as exchange order type disclosure, the hash crash, and early looks at machine readable economic indicators, concerns over high frequency trading have risen. Meanwhile, with initial registration costs in the rearview mirror, compliance costs concerns have dropped off.” (See graph bottom-right)

Top of the list is uncertainty regarding how hedge funds will be treated under mandatory registration with the US Securities and Exchange Commission for managers running $100 million or more, and the implications of Form PF, which requires them to provide information on the hedge funds they run to the Financial Stability Oversight Council, the report found.

Horizon Software introduces ETF market making and algo trading in China

Horizon Software introduces ETF market making and algo trading in China


Published on   Jul 17, 2013


Horizon Software, the provider of electronic trading solutions, has announced that a leading securities house in Shanghai has chosen Horizon Delta One Trader and Horizon Algo Trader as their ETF market making and algo trading solution in China.

Horizon Delta One Trader is a low latency order and execution management system dedicated to Delta One products. The solution implements trading strategies, such as statistical and index arbitrage, as well as making market for Delta One Products such as Futures, ETFs, CFDs, etc.

“We understand that China is a growing and evolving market and things are changing and moving rapidly on a daily basis. And we see a huge potential there. Horizon Software is always willing to understand our clients’ needs and in turn providing excellent solutions that can accommodate them.” said Jean-Marc Delfarguiel, CEO of Horizon Software.

“It’s challenging and the road ahead is not easy; but we believe our solutions are the best. Providing the first ETF market making system in China is a strong proof of our solutions within this space.” noted Sylvain Thieullent, APAC Director, Sales, Marketing and Client Services.

“Horizon Software is delighted to be chosen by our client in Shanghai. We are looking to further expand our footprint in China.” said Marco Chung, Head of Sales for North Asia. “And we are committed to provide the sophisticated electronic trading solutions for our clients in the region, be it market making, algo trading or order and execution management.”

TS Associates releases Correlix 5.2

TS Associates releases Correlix 5.2

Published on   Jul 18, 2013


TS Associates, providers of Precision Instrumentation of electronic trading systems, and developers of TipOff, Correlix, and Application Tap, have released Correlix 5.2, the trade flow latency monitoring solution.

The new Analytic Business Reporting Module automates the production of reports summarising trading activity and latency metrics. Output includes transaction count, traded volume, notional value and latency statistics. Reports can be broken down by time period, session, customer, account, order type or symbol. Reports can also be aggregated by resource tier such as gateway, FIX engine, SOR, matching engine or execution venue. Reports are saved for historical comparison and trend analysis. Report generation is now integrated into the core architecture of the product, improving on the previous generation of customised add-on reporting.

The account mapping feature allows Correlix customers to migrate from FIX to alternative protocols without losing any of their existing reporting functionality. Whilst account information is present in FIX orders, this information is often omitted from binary order entry protocols offered by exchanges and brokers. The account mapping feature of Correlix 5.2 reconstructs this information from session management messages or by inference through complex correlation rules.

Henry Young, CEO, TS-Associates, says, “Correlix has always had the reputation of being the business focussed trade flow monitoring tool of choice. With Correlix 5.2 we have added to the product’s respected business reporting credentials. We are proud of what we have achieved for our customers since acquiring Correlix last year and have exciting plans for the future.”

Raymond Marra, TS-Associates COO Americas, says, “This release validates TS-Associates’ commitment to Correlix as the premium product for business centric trade flow analysis. A press release simply cannot do justice to the myriad of new features.”


Fluent Trade Technologies Selects Solace Systems to Fuel Automated Trading Systems and Broker |

See on Scoop.itThe FIX Protocol and multi asset electronic trading.
Fluent Trade Technologies Selects Solace Systems to Fuel Automated Trading Systems and Broker
See on

Buyside Wants Algo Clarity

See on Scoop.itThe FIX Protocol and multi asset electronic trading.

Make electronic trading easier to understand – That s what buyside wants from the sellside when it comes to algorithms, according to a new report.
See on

Sao Paulo based BLK Sistemas Financeiros Accelerates Trading with Perseus LiquidPath®

Sao Paulo based BLK Sistemas Financeiros Accelerates Trading with Perseus LiquidPath®

Perseus Telecom


Sao Paulo based BLK Sistemas Financeiros Accelerates Trading with Perseus LiquidPath®

–        Perseus Telecom Brazil Connects BLK Sistemas Financeiros to Brazil Exchange in less than 50 microseconds

–        Perseus LiquidPath® Enhances Liquidity with Ultra-Low Latency Connectivity with BM&F Bovespa

SAO PAULO– 15 July 2013 – Perseus Telecom, a leading provider of ultra-low latency, high capacity global networks, today announced that BLK Sistemas Financeiros has connected to the BM&F Bovespa through the Perseus Telecom LiquidPath connection of sub 50 microseconds. LiquidPath launched late in 2012 by Perseus, connects the ALOG/Equinix (SP1) datacenter with the BM&F Bovespa data center (CT1) in less than 50 microseconds Round Trip Delay (RTD).

Perseus Telecom winners of the Global Telecoms Business Innovation award in 2012 for building the fastest connection between the Nasdaq OMX datacenter in New York and the BM&F Bovespa data center in Sao Paulo, has since launched its LiquidPath product, which furthers the commitment to market-to-market trading. LiquidPath assists brokers, vendors and their customers, with international communications, infrastructure support and ultra low-latency last mile connectivity to exchanges.

Rogério Paiva Managing Director at BLK Sistemas Financeiros said, “We carefully selected Perseus Telecom, who is well known in Brazil for its exchange connectivity platform, LiquidPath, which has helped ensure the best performance locally for our customers.”

BLK Sistemas Financeiros is a specialized electronic & algorithmic trading service provider that assists in developing proximity colocation infrastructure for high speed electronic trading operations. The BLK customer requires a sophisticated ultra low-latency straight through processing environment, based on the latest technological advancements available.

“BLK Sistemas Financeiros is a great new addition to the Perseus Telecom community connecting to our global network from Brazil, said Marcos Guimaraes, President of Perseus Telecom Brazil, “BLK can now help its customers take advantage our LiquidPath infrastructure to provide access to the BM&F Bovespa for its trading customers, but also to other exchanges in the 60 global markets Perseus serves.”

# # #

About Perseus Telecom

Perseus Telecom is an award winning global, facilities based licensed carrier of enterprise and telecommunications services with a focus on ultra-low latency connectivity. Perseus provides the fastest routes between New York and Brazil exchange markets and was recently awarded for QuanTA, the fastest trans-Atlantic route between New York and London. The company also operates the fastest route between London and Frankfurt over its high-tech wireless/microwave service as well.

Perseus connects global markets with significant points of presence in New York, Chicago, Mexico, Tokyo, Singapore, Sydney, Hong Kong, London, Frankfurt, Stockholm, Moscow, Madrid, Milan and Dublin. The company’s management team has decades of experience in major finance, telecommunications and technology companies operates from offices in London, Dublin, New York, Chicago and Sao Paulo.

For more information about Perseus, please visit or contact us at +1 (212) 300-6813 or


Dan Watkins

+1(347) 394-3068

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