June 01, 2011

GETCO, the global electronic trading firm, today announced the launch of GETCO Execution Services’ GETAlpha, an execution algorithm for U.S. equities that the high frequency trading firm will make available to institutions.

GETAlpha is the first product to provide the investment community with the same high-tech trading tools as a dedicated electronic, or high frequency, market maker, the firm said in its release. The firm’s GETAlpha is utilizing GETCO’s research, technology, and infrastructure, which the firm says will provide professional investors with an execution-targeted edge.

As a modern day market maker, GETCO focuses on optimizing micro-executions to create macro results, the firm explains. Market makers facilitate trading and price discovery by posting buy and sell orders, and, in turn, attempt to capture a small portion of the bid-ask spread.

Widely recognized as one of the world’s most sophisticated trading firms, the firm points out that GETCO is a market-maker on more than 50 exchanges, ECNs, ATSs and MTFs in North and South America, Europe and Asia.

By utilizing the same strategies as GETCO's core market making business, GETAlpha enables institutional investors' order executions to mimic the order execution behaviors of a dedicated marketmaker, thus minimizing order detection and information leakage, and providing superior executions.

“It’s clear investors want tools to help keep them competitive in today’s rapidly evolving financial markets. That's why GETCO Execution Services is launching GETAlpha," comments Daniel Coleman, Head of GETCO’s Client Services, in the firm’s release. "With GETAlpha, institutional investors now have access to the same world-class strategies and infrastructure that GETCO has spent more than a decade developing, refining and, most importantly, using. Leveraging GETCO’s continuous investment in market-leading technology gives our customers micro-alpha with reduced market impact.”

According to the firm, GETAlpha is the latest offering from the firm’s client services division, GETCO Execution Services (GES). GETCO Execution Services helps investors solve their execution needs with a variety of high-tech trading solutions, including:

• GETMatched, an SEC-registered Alternative Trading System (ATS), or dark pool, where approximately 100 million shares per day are executed on average. (GETMatched formerly was known as GES when it was the division’s only client service offering.)

• GETRouted, a customized low latency router. About GETCO:

ABOUT THE AUTHOR
Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in ...