Advanced technology tools allow advisors to instantly execute sophisticated equity strategies
DENVER (December 17, 2009) – Trust Company of America, a specialized provider of asset custody and technology services to fee-based Registered Investment Advisors, today unveiled a set of three algorithmic trading options. Advisors can now combine the benefits of state-of-the-art, model-based trading with sophisticated equity trading strategies.
The options include:
• Volume Weighted Average Price (VWAP) – minimizes slippage against VWAP by targeting the stock’s expected volume profile between the time the order is placed and market close. Uses historical and real-time volume data. Under normal conditions will complete by market close.
• Time Weighted Average Price (TWAP) – spreads the order out evenly between the time the order is placed and market close. Under normal conditions will complete by market close.
• Percent of Volume (POV) – strives for minimal market impact by participating at 5 percent of volume. Ideal when consistent participation takes priority over guaranteed completion. Due to various factors may not complete by market close.
Trust has made it easy to select an algorithmic trading method. In TCAdvisor, wherever an advisor can set or edit the special instructions for an equity trade, an algorithmic trading method can be selected.
By providing advisors with sophisticated, easy-to-use trading tools, Trust makes firms more successful and makes advisors’ lives easier.