Broker launches 'smart' trading algorithm

Monday 27 August 2007 at 16:00

A leading electronic broker has launched a breed of "smart" trading algorithms that react to market events and trade accordingly, amid concerns the use of algorithms contributed to this month's equity market volatility.

The new trading algorithm, Dynamic Implementation Shortfall, is from ITG, a US agency broker. It trades "opportunistically", enabling fund managers and hedge funds to optimise profitability and lower trading costs, according to the broker.