Townsend Analytics announced the availability of two new algorithms from UBS available on its RealTick Execution Management System (EMS). UBS' Tap and TapNow algorithms, the latest from the firm's Global Direct Execution Services, seek out both dark and displayed liquidity."This is a result of the big drivers we're seeing here [in the U.K] and in the U.S.," says Rustam Lam, Executive Director for Townsend Analytics. " The buy side wants to be able to access all of its brokers services and the latest execution services from the brokers they do business with in a single portal."
The customizable algorithms hits UBS' Price Improvement Network (PIN) internal pool of liquidity, as well as other dark pools and alternative trading systems and traditional exchanges and displayed markets.
Tap enables users to set how fast to fill orders and how much orders can interact with displayed markets while TapNow is a more aggressive version of the Tap algorithm. TapNow targets liquidity more urgently when time is of the essence for a trader and can access both dark and displayed liquidity sources at the same time.
Ultimately, Lam says that globally traders are looking to use these types of offerings to differentiate how they trade and gain a competitive edge. "It's about giving the trader the ability to use the technology and use the intellectual capital behind the execution services provided by multiple brokers on one platform. That way they can use that to minimize slippage and gain alpha within a trade."
Lam also sees the proliferation of algorithmic trading throughout Europe and the global reach of UBS as drivers to the latest round of algorithm offerings. "Europe will continue to adopt algorithmic trading at an increased pace now," he adds. "For a global broker like UBS it's important to be able to extend all of your execution services out to the institutional client base effectively."