With this service, clients will be able to leverage UBS’s foreign exchange capabilities to optimize settlements in the currency of their choice as routing and FX exposure will be handled entirely by the UBS algorithmic trading engine.
UBS said that clients will see an aggregated, weighted view of a symbol’s global liquidity instead of two separate country-centric views, which is expected result in better accuracy as the UBS strategies calculate optimal placement behavior, aggregated risks and potential market impact.
Th clients will be able to access anywhere from 20% to 80% more liquidity in interlisted names without having to deal with complex settlement procedures, UBS said.
Orders will be managed with an integrated and dynamic picture of both markets’ liquidity and price discovery mechanisms through UBS’s own cross-border consolidated order book.
UBS Securities Canada CEO and Head of Canadian Equities Rick Meslin said that the trading volume on Canadian and US exchanges of inter-listed stocks can reach into the billions of shares daily. With these volumes driving potential cost savings to clients it was imperative for UBS in this age of ‘Algo 2.0’ to build a better mouse trap. And we have.
The new technology can post and track volumes in both markets simultaneously. Clients will see an improvement in clarity of overall liquidity and significantly reduce the risks of opportunity cost and negative selection.
UBS Investment Bank Global Head of Algorithmic Trading Owain Self said that the goal for this offering was to look at the challenge of trading interlisted stocks in a new way – and resolve issues clients previously had to grapple with.
