November 12, 2013

Wolverine Execution Services (WEX), an equities, options, futures, and ETFs technology and execution services provider based in Chicago, Ill., has launched HedgeAgent, an application specifically designed to help the buy and sell-side, particularly the buy-side, hedge options.

The goal of the product is to simplify the hedging process by automating tasks for firms that tend to trade options and looking to put on volatility positions, according to Kevin Kernan, director of product development at WEX.

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“Traders hedging single options, spreads, or legging into spreads through the WTP Spread Agent can streamline their hedging process in addition to saving time and money with HedgeAgent,” says Kernan.

HedgeAgent allows the user to set the specified hedge ration, calculates hedge quantities based on current delta, and sends the corresponding hedge order out after the execution.

Other benefits include the ability to set safeguards like defined risk limits, stop loss and send notifications if a hedge stalls. The product was originally used internally by an affiliate proprietary trading company called Wolverine Trading. Due to customer demand, WEX launched a version for customers available through the WEX Trading Platform.

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Zarna Patel is a staff writer for InformationWeek's Financial Services brands, which include Bank Systems & Technology, Insurance & Technology and Wall Street & Technology. She received ...