Following its acquisition by Nomura Holdings last year, Instinet has enhanced its algorithmic trading suite to combine the best of both firms' capabilities. The new offering, Instinet Execution Experts, is now available to Instinet Trading Portal and Newport clients in the U.S.
"We've leveraged the strengths of the two organizations and algorithmic platforms," says John Comerford, EVP, Global Head of Trading Research at Instinet. "We've taken Instinet's liquidity, dark pool connectivity and intelligent market access and the next generation opportunity driven platform at Nomura in the U.S. to create the new suite of algorithms."
The initial strategies developed within the Instinet Execution Experts include updated versions of Nighthawk and Cobra from the Instinet side and Portfolio IS from the Nomura side.
"Every single algorithm now has full access to the Nighthawk-based dark pool aggregation," says Comerford. "But it's not just dark pool integration, but dark pool optimization and how the algorithms interact with different dark liquidity pools."
Comerford adds that new algorithmic suite is also based on a new component-based platform. "What that allows us to do is each algorithm is made up a series of sub-algorithms that all are purpose built to identify specific price and liquidity opportunities," he explains. "This architecture has allowed us to rapidly develop new algorithms and provide rapid customization strategies as well."
The platform offers a set of portfolio components supporting implementation shortfall, cash balancing and residual risk strategies. "The component-based platform also enables us to stay at the forefront of market micro-structure changes and new destinations and make quick changes and additions," says Comerford.
A global version of Instinet Execution Experts is expected by the end of this year.