ALGO UPDATE: QB Launches Octane and Roll
The electronification of futures and fixed income markets continues.
Quantitative Brokers (QB), the independent provider of advanced algorithms and data-driven analytics to clients in the Futures and US Cash Treasury markets, announced the launch of two new algorithms, Octane and The Roll. Octane and The Roll join QB’s existing suite of best execution algorithms: Bolt, Strobe, Legger and Closer.
According to Alastair Hawker, Global Head of Sales at QB, the two new algorithms further push the boundaries of electronic execution in futures markets.
“In the earlier days of QB, we pioneered an arrival price algorithm, Bolt, that changed how our clients traded,” said Ralf Roth, CEO of QB. “At this stage of our company’s progress, we are focused on building additional strategies that complement our core offering and solve other challenges our clients have identified.”
Octane prioritizes urgent completion; The Roll optimizes execution for calendar spreads
“With Octane, we are excited to bring an automated and intelligent approach to high urgency situations, enabling our clients to utilize a different approach that they do not have available to them today,” said Alastair Hawker, Global Head of Sales at QB. “The Roll and its accompanying analytics, makes it more compelling than ever for clients to execute rolls electronically.”
So, here’s the skinny.
Octane is a liquidity seeking strategy designed to optimally execute when urgent completion is the primary objective. It is engineered to identify and act on liquidity opportunities and is recommended for orders that are expected to have strong short-term alpha or are otherwise critically urgent.
The Roll is QB’s first algorithmic strategy specifically built for futures rolls (listed calendar spreads). It is engineered to execute rolls of any size, optimally and with ease. The unique strategy, which replicates some aspects of voice execution services, incorporates the advantages of QB’s algorithms, along with scale, consistency, and analytics.
Both algorithms are supported by QB’s comprehensive and state of the art Transaction Cost Analysis (TCA) service. This includes innovative new metrics specifically designed to measure the performance of these new strategies.
Focal point of role has shifted from T&E to TCA.
Pavilion Global Markets notes that in trading, 'best ex' is an evolving process.
Cantor Fitzgerald cites execution quality, customization, and access to liquidity as trading differentiators.
Growing use in developing regions and other asset classes.
On the sell side, ‘Execution as a Service’ is in, off-the-rack algos are out.