Credit Suisse’s Advanced Execution Services (AES) unit has launched algorithmic trading in Indian equities. The bank says that Algorithms is sought by investors to trade more efficiently and avoid sharp spikes in volatility while minimizing market impact, particularly given the less liquid market conditions prevalent in many markets.
It also says that one strategy aimed at minimizing this impact is SNIPER – an aggressive and opportunistic liquidity-seeking algorithm developed by Credit Suisse to pick off liquidity as it becomes available at a target price.
The company claims that the AES suite of algorithms also includes traditional algorithmic strategies that seek to divide trading volumes up over time and strategies that seek to trade at the Volume Weighted Average Price of a stock. AES also offers strategies that seek to minimize implementation shortfall or the difference between the price at which a client decides to trade and the actual execution cost – such as INLINE and other liquidity-seeking strategies like GUERRILLA.
