Knight Releases Algo for Small- and Mid-Cap Names

Knight Capital Group has released Oasis, a smart order execution algorithm for trading in small- and mid-cap liquidity, for its EdgeTrade Algorithmic Suite.

Oasis uses liquidity sourcing logic to handle trading obstacles associated with thin and difficult-to-trade names.

In a statement, Joe Wald, Managing Director at Knight, said, “Our clients have expressed that effectively executing small- and mid-cap stocks is an important source of alpha for them. They need a specialized strategy to handle the complexities of navigating through intricate trade scenarios rather than a one-size-fits-all approach.”

He added, “We created Oasis as a next generation algorithmic strategy in recognition of the fact that there are increased overall costs and risks associated with trading small- and mid-cap stocks, such as higher volatility, less liquidity and wider spreads. Oasis leverages Knight’s trading expertise and premiere liquidity position in this particular equities category.”

Users can access Oasis and the EdgeTrade Algorithmic Suite through KnightDirect, the firm’s multi-asset class execution management system (EMS) and a number of third-party EMS’ and OMS’.