encompasses a wide range of portfolio-trading strategies involving the purchase or sale of a basket of at least 15 stocks.
NYSE Euronext: KCG) today introduced Knight Global Program Trading
to provide institutions in the Americas, Europe and Asia with program trading
capabilities combining global equities sales and trading expertise with Knight's multi-market technology and liquidity.
Previous researchers have considered the possible effect of program trading
on volatility, a proposition which requires a model for the natural evolution of volatility.
Asked to identify their concerns, respondents most frequently mentioned program trading
, volatility, and their feeling that the market was controlled by large institutional investors.
Although program trading
has become a catch-allphrase, it usually refers to "arbitrage," which sounds daring but is actually a strtegy that institutional investors can use to lock in risk-free profits by exploiting differnces that develop between the value of teh actual stocks and the futures contract.
The Program Trading
Desk will specialize in the trading of equity portfolios leveraging the firm's electronic platform.
Gould played an instrumental part in developing cutting edge program trading
and analytic systems as head of the program trading
desk at Donaldson, Lufkin, and Jenrette and later with Credit Suisse.
It results largely from a misunderstanding of program trading
and the reasons for its rapid growth over the past five years.
With nearly 15 years of experience, Aronstein joins Piper Jaffray from Bank of America where he was previously a principal in electronic trading services and focused on growing the program trading
business with North American and European clients.
This means providing program trading
, algorithmic trading solutions, direct market access, access to liquidity solutions and sales-trading service but also quantitative research, ETFs and other Delta 1 products.
Of the many types of computer-assisted securities trading, program trading
may be the most misunderstood.
Backtesting and automated program trading
tools deliver a competitive edge to Active Traders