| Execution is the manifestation of the abstract steps of research and portfolio construction. This is where theory meets reality – the market. A smooth and efficient transition from the portfolio construction phase through the execution phase is essential.
Selecting the right methods and technologies are crucial for success in this phase. Crowther Investment can help implement the right mix of global trading tools, techniques, and technologies for:
- Smart order routing
- Seeking liquidity; dark pools, gray pools
- Minimizing market impact
- Optimizing transaction cost
- Allocating commission usage vs best execution
- Transforming market data to intelligence
- Analyze & manage real-time and tick data
- Quantitative equity trading models
- Market microstructure analysis
- Multi-factor equity risk models
- High frequency data research
- Translate news into analytics, ranks, scores, and signal for quantitative models (news sentiment/news analytics); back testing, point in time, as reported, restated data
- Intelligent text & news; searching, reading, parsing, elementizing, coding, sentiment, relevance, logical, and inference processes, Natural Language Processing (NLP), machine learning, unstructured text, machine readable news, social media analytics/sentiment, unstructured - big data
- Complex event processing (CEP)
- Principal Components Analysis (PCA), Independent Components Analysis (ICA)
- Implementing trading strategies, systems & software: event driven, market neutral, long / short, 130/30, and pairs trading; macro & sector; distressed, fixed income, convertible, capital structure, cross asset class, index & statistical arbitrage
- Implementing technology strategies for: algorithmic trading, automated trading strategies, aggregation & fragmentation; direct market access, intelligent order routing, scheduling, prioritizing & working trades; avoid toxic order flow, algorithmic front-running, predatory algos, blockchain technology
- Constructing and directing portfolio, package, basket & program trades
- Portfolio transition management, asset allocation, asset structuring
- Order Management Systems (OMS) and Execution Management Systems (EMS)
- Trade protocols: FIX, FPML, SWIFT, etc
- High frequency, low latency systems, ticker plants, FPGA
- Efficient use of crossing networks, ECNs, electronic and traditional exchanges
- Controlling anonymity
- Incorporating reference & market data into the trade process
- Communicating order details and contingencies
- Efficient and prudent use of soft dollars
- Measure and improve the trading phase of the process: VWAP, TWAP, minimize slippage & loss of alpha from portfolio construction phase, etc.
- Boston Security Analysts Society - CFA Continuing Education
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