New York - Liquidnet, the institutional trading network, has launched its Algo Ranking Model technology, designed to help institutional traders make execution decisions. The Algo Ranking Model, built to complement Liquidnet's recently launched suite of Next Gen Algos, uses a multi-factor model to holistically profile every order to rank execution strategies in real-time according to order characteristics, trading objectives, market conditions, and performance targets. "Today's markets have become increasingly complex and our members have said that many of the basic algo offerings have become commoditized. The only way to truly capture a performance advantage is by choosing the right strategy based on the conditions of the stock and market at the time of execution," said Rob Laible, global head of Liquidnet's Execution & Quantitative Services (EQS) Group. Liquidnet's Algo Ranking Model leverages Liquidnet's institutional trading insight and quantitative expertise to translate complex market data into actionable information. The model ranks Liquidnet's Next Gen Algos for three key execution objectives: performance, fill rate, and an optimal combination of the two. The trader is presented with a set of ranked algo strategies and then decides the course of action, gaining insight into the market factors that influenced each strategy's ranking. "Technology is crucial to harnessing the ever-expanding volume of market information so that institutional traders can take their productivity, efficiency, and performance to new levels. In rapidly changing market conditions, traders often only have seconds to determine the right strategy to execute. Liquidnet's Algo Ranking Model takes in relevant data before employing sophisticated logic and computing power to deliver meaningful and actionable conclusions to traders who are under pressure," said Akis Georgiou, Liquidnet's head of Quant Analytics & Research.
Liquidnet announces the expansion of its data-driven insight services with the launch of its Algo Ranking Model as part of its "Next Gen Algo" suite of products.