Featured Innovations

Global Equity Portfolio Algorithm Minimizes Global Currency Risk

The Portfolio Trading Challenge

Trading a portfolio (list or basket) of stocks across multiple countries and currencies is daunting because of various market and time zone differences as well as rapid fluctuations in currency rates. To remain dollar neutral or ratio neutral, traders must break down the order and trade it in pieces. Manually trading a portfolio is very time-consuming and readily lends itself to error.

Key Challenge:
Managing multiple markets and currencies while trying to be ratio or dollar neutral.

The Automated Portfolio Trading Solution

Institutional equity traders utilize sophisticated algorithms for daily trading but that technology has not been able to solve the challenges posed by global portfolios. To be useful, an algorithm needs to be able to process hundreds or thousands of names and plot the most efficient trading horizon based on various market opening and closing times. Such an algorithm must also adapt to real-time market change based on trading impact and fluctuating currency rates to obtain the desired dollar or ratio neutral balance.

Key to Solution:
Automating the trading process intelligently to handle multiple markets, time zones, and currencies.

Bloomberg Tradebook Equity Portfolio Algorithms

Tradebook offers traders the ability to work with a global portfolio using two different benchmarks and extremely flexible cash constraints. Traders simply fill out the order ticket with the same instructions they would give a voice broker and the algorithm takes care of the rest.