Instinet, a global securities firm and wholly-owned subsidiary of Nomura Holdings, Inc., has launched Instinet Execution Experts, an enhanced package of algorithms that incorporates best-of-breed components of Instinets previous algorithmic offering with Nomuras former US strategies.
“Over the past six months, our team has worked to identify the most advanced aspects of Instinets and Nomuras US algorithmic suites to create what we feel is a highly sophisticated product. Based on early client feedback, we believe weve successfully combined the dynamic behavior of Nomuras algorithms with Instinets liquidity and market access capabilities, creating an offering that will help clients improve execution quality regardless of the size, complexity or liquidity constraints of a trade,” says John Comerford, executive vice president, global head of Trading Research, Instinet.
The first individual strategies to be developed within the Instinet Execution Experts framework are enhanced versions of Nighthawk and Cobra, previously Instinet-branded algorithms, and Portfolio IS, previously deployed at Nomura. Nighthawk, a dark liquidity aggregation algorithm, has seen the addition of several new venues, including LeveL ATS. Cobra, which intelligently reduces market signaling and opportunistically accesses liquidity, now has the ability to access multiple dark pools in addition to ECNs and exchanges. Portfolio IS is an adaptive programme-trading strategy that utilises proprietary market impact and risk models to balance market impact and opportunity cost while optimising dark-pool interaction for higher-cost trades.
The Instinet Execution Experts are based on a unified, component-based framework where all algorithms have access to price and liquidity discovery strategies and dark pool aggregation technology. This common platform includes a full set of portfolio components that support implementation shortfall, cash balancing and residual risk strategies, and ensures that all algorithms have immediate access to new execution techniques and liquidity destinations as they are developed.
Additionally, the architecture enables Instinet to quickly develop new algorithmic tools as the market evolves, customise individual client solutions and more easily modify strategies that have already been developed.
The Instinet Execution Experts are currently available to US clients. A global version of the Experts is expected by the end of the year.