Electronic Specialist(ESP) says that EdgeTrade has completed the integration of its collection of algorithms with ESP’s Electronic Algorithm Routing Network (EARN). EARN aims to provide buy-side institutions with access to more than 75 algorithms, crossing networks, exchanges and ECNs, on either an anonymous or fully-attributed basis, through one gateway. EdgeTrade is an agency broker and developer of algorithmic strategies and direct market access (DMA) software utilized by institutional buy-side and sell-side firms in North America and Europe.
The EARN portal, available through ESP’s Global Direct Market Access Network and more than a dozen integrated industry-leading trading applications and OMSs, features such strategies as VWAP, TWAP, Volume Participation, Implementation Shortfall, Smart Order Routing, Pairs Trading, and a variety of other algorithmic strategies that are unique to each of the 15 participating brokers on the Portal.
“Now clients across ESP’s network, which include hedge funds, pension funds, mutual funds, investment managers and broker/dealers, can access EdgeTrade’s algorithms through any of the integrated trading applications that we support,” says Scott Kurland, senior managing director of Electronic Specialist. “We’ve seen increasing demand from our buy-side institutional clients for access to agency-only algorithmic providers, and EdgeTrade is a proven provider in this space.”
EdgeTrade algorithms currently available through EARN include VWAP, VOLUME TRACKER, TWAP, LIQUIDITY PACED (a smart market-impact reduction strategy), and SUMO (an aggressive smart-routing model with market impact reducing factors).
“Partnerships such as this are intended to benefit the needs of a trading community that demand flexibility and transparency in the use of technology,” adds Joseph Wald, CEO of EdgeTrade. “EdgeTrade is in business to empower traders and this partnership with ESP further supports our mission.”
EdgeTrade claims to be gaining recognition for its array of algorithmic strategies, organically developed and customized for each client user by the firm’s quantitative team. Through EdgeTrade’s front-end trading system, institutional buy-side and sell-side traders place single stock and basket equity orders. The EdgeTrade trading system combines market data, multiple execution destinations, order management and risk management. Traders have the option of connecting to EdgeTrade via FIX (Financial Information eXchange) or through other trading and order management systems. EdgeTrade’s algorithmic strategies and direct market access order types are currently integrated with major industry trading and order management systems.
EARN allows institutions to be anonymous or attributed when sending large order blocks or lists to multiple algorithms and crossing networks. The portal can minimize market impact and manage performance against a benchmark, by allowing clients to spread orders simultaneously across a number of providers, execution venues, and algorithms.
One of the major benefits that ESP provides is centralized clearing, settlement and delivery across all market destinations, crossing networks, and algorithms, so clients get the added benefit of having their EdgeTrade trade executions aggregated with all of their other electronic executions, and delivered as a single or allocated block trade.
Established in 1996, EdgeTrade is an agency only broker-dealer and software developer that never conducts principal or proprietary trading. It has a client base of 150 institutional firms in North America and Europe and is a member of the NASD and SIPC.