ALGORITHMIC TRADING

Algorithms have quickly developed from an esoteric trading methodology into a mainstream tool that is widely relied upon by hedge funds, pension funds and other institutional traders. Algorithmic software has led to the development of “dark pools”, which are stock crossing networks that provide liquidity not displayed on order books, which enable traders to move large orders without revealing their positions to the market.

The two main objectives of algo trading are, first, to “camouflage” orders and, second, to exploit small pricing inefficiencies that are systematic but short-lived.

Deep Value Enclave

We have entered into a joint venture arrangement with Deep Value Inc., a leading developer of algorithmic software, to develop execution strategies for both buy and sell side clients through our Deep Value Enclave division. The New York Stock Exchange has recently selected our Deep Value Enclave software as one of two algorithms offered to NYSE floor brokers.

Buy Side.  Clients are typically able to achieve significant cost savings relative to their existing cost benchmarks. We are paid only for performance, receiving a modest percentage of any cost savings achieved over an agreed-upon benchmark. Transaction costs are analyzed on a monthly basis, and the client's execution algorithms are continually refined in response to changing market conditions and anticipated order flows.

Sell Side.   Deep Value Enclave structures algorithmic trading strategies for broker-dealers and platform vendors to complement their existing algo capabilities, or as a stand-alone platform. Deep Value has a portfolio of 'smart' variants of standard algorithmic trading strategies; VWAP, implementation shortfall, volume participation of TWAP and other customized strategies.

Our algorithm products offer both market-beating performance and attractive pricing.


For sales inquiries, please contact:
hdevarajan@enclavecapital.com

For additional information on Deep Value, please visit:
www.deepvalue.net