The company said that the addition will allow traders to execute market neutral strategies to help leverage changing market conditions by simultaneously selling and buying highly correlated securities.
The Citi’s pairs algorithm leverages an aggression level methodology together with other parameters to help optimize hedging strategies.
The new pairs strategy has been developed by Citi Electronic Markets in close cooperation with execution management system providers, while leveraging the firm’s execution logic and extensive customization capabilities.
Citi head of North American Electronic Execution Sales Tim Reilly said that after extensive internal testing, they are proud to bring this strategy to market. This is clearly another milestone for their platform and underscores their commitment to provide clients with best-in-class self-directed trading tools.
Portware and ConvergEx’s RealTick have already made the Citi pairs algorithm available in their trading platforms and the additional vendors are expected to roll out the strategy in February 2012.