We present a framework for optimal execution in presence of stochastic volatility. The theoretical model utilizes the fair pricing theory of market impact and the Heston model for volatility.
We use computer optimization to solve common trading problems, including optimal execution schedules on high volatility near the open or on the arrival of signals with short-term alpha decay.
Two data sources give the buyside desk a natural advantage over their non-institutional counterparties. First, their algorithmic execution data reveals predictability in order flow; this information can be monetized through predictive algorithm control. Second, it is possible to determine optimal execution schedules given a historical dataset of trade origination events, a technique we have called “alpha profiling.”
Portware Enterprise is a fully customizable execution management system designed to act as a central platform for the creation and execution of algorithmic trading strategies for global equities, futures, options and FX. Portware is not affiliated with any broker, giving our clients unconflicted access to the widest range of liquidity providers, broker algorithmic suites and trading destinations worldwide. Portware Enterprise is currently used by more than 100 firms worldwide, including many of the world’s largest and most sophisticated trading firms. On the buy side, Portware is used by leading institutional investment firms, alternative asset managers and quantitative hedge funds. On the sell-side, Portware is used by program, principal and agency traders to automate all aspects of their client order flow.
Portware Strategy Server is a powerful algorithmic engine designed specifically for high volume, high-frequency automated order management. Strategy Server allows users to create complex trading strategies and algorithms in a dedicated, highly secure trading environment. It can be used independently as a stand-alone, black box trading solution, or in tandem with Portware Enterprise to address specific algorithmic development and trading requirements. In either case, Strategy Server can process a massive number of orders and their associated message traffic, routing orders to any global market destination via integrated, pre-certified FIX connections.
Portware FX provides traders with a real-time view of the entire FX marketplace through a single, fully customizable front end trading environment. This is coupled with next generation algorithmic strategies, powerful analytics and end-to-end workflow integration, providing users with a compelling and complete FX trading solution.
Portware FX aggregates liquidity from all dealer banks and ECNs and presents it in a single depth-of-book for both point-and-click and algorithmic execution. Portware’s disclosed pricing model enables clients to leverage their credit and relationships for optimal pricing and size when trading with brokers, while our comprehensive ECN aggregation provides clients with streamlined access to all alternative trading venues. With support for streaming executions, RFQ’s, integrated broker algorithms and an embedded suite of Portware strategies that can be customized to address users’ specific trading objectives, Portware FX gives clients unparalleled control over their order flow.
Portware FX has been deployed by leading hedge funds, CTA’s, traditional asset managers, pension funds and brokers dealers globally. All Portware FX clients benefit from the system’s flexible user interface, open architecture and ease of integration into existing trade workflows.
In today’s competitive global trading environment, asset managers need to maximize execution performance and increase trading efficiencies, all while maintaining relationships with brokers and optimizing commission budgets.
Alpha Vision is the first – and only – algorithmic optimization solution that uses predictive analytics to automatically select and implement the optimal execution strategy. By dynamically switching between algorithms and adjusting to changing market conditions in real time, Alpha Vision maximizes alpha capture while minimizing impact costs, adverse selection, information leakage and the impact of high frequency trading.
Award acknowledges record global client growth, unparalleled product innovation and deep multi-asset coverage
New York, Hong Kong, and London, November 13, 2014—Portware, the first and only global provider of multi-asset trade automation solutions powered by artificial intelligence, today announced that Buy Side Technology has again recognized Portware Enterprise as the Best Buy-side execution management system (EMS) in the 2014 Buy Side Technology Awards. Portware Enterprise was selected for its unique combination of customization, pre- and post-trade analytics and multi-asset coverage that set it apart from other systems. The win comes on the heels of a record year for the company, as several global asset managers including Invesco and The Boston Company have selected Portware as the centralized hub for execution management across asset classes (incl. global equities, FX, futures, options and fixed income).
Judged by a panel of experienced journalists, independent analysts and industry experts, the award recognizes Portware as the only EMS provider to combine artificial intelligence, visualization, algo and commission optimization tools for real-time decision support. According to Buy Side Technology, the best buy-side EMS award recognizes the platform that features true multi-broker/exchange connectivity, pre-trade transaction cost analysis (TCA), sophisticated algorithmic trading tools and direct market access (DMA) and strong integration capabilities with order management systems (OMSs).
Portware’ has achieved record growth over the last year and recorded more new client wins than any other point in the company’s history, including tier-1 asset managers who manage more than $3 trillion of assets. Global buy-side firms choose Portware for its unique ability to address their most complex workflows across multiple asset classes with a truly customizable and real-time platform that helps users efficiently automate and optimize alpha. Portware has shown sustained, significant global growth across the U.S., Europe and Asia and continues to invest in product innovation to deliver the premier thinking EMS to global financial institutions.
“Our clients have been amazingly supportive and engaged in helping us achieve this honor. They have partnered with us to bring to market ideas and features that are pushing buy side capabilities to new heights. They have also been instrumental and generous with their time in talking to other buy side firms on our behalf—we could not ask for more” said Alfred Eskandar, CEO, Portware. “Market structure complexities and the electronification of other assets classes will drive more demand for custom trading technologies and we are honored to be recognized as the firm that is leading the pack.”
Founded in 2000, Portware LLC is the financial industry's leading developer of broker-neutral trading solutions for global equities, futures, options and FX. With offices in New York, London, Hong Kong and Hyderabad, Portware works in partnership with its clients to create highly integrated solutions to streamline workflows and increase operational efficiencies on trading desks worldwide. Portware's flagship product, Portware Enterprise, is a fully customizable trade management and execution system for single stock, portfolio, basket, automated and algorithmic trading. For more information, please visit www.portware.com.
Portware, the first and only global provider of multi-asset trade automation solutions powered by artificial intelligence, today announced the completion of private equity financing led by Long Ridge Equity Partners and the Portware Executive team. The minority recapitalization maintains Portware’s independence and recognizes the company’s proven record of innovation and success in delivering award-winning multi-asset trading solutions. The new financing will be used to retire all outstanding debt and provide additional resources for growth initiatives. This transaction follows a period of dramatic growth for the company, as Portware Enterprise has recently been selected by global institutions representing more than $3 trillion in assets under management as the centralized hub for execution management across global equities, FX, futures, options and fixed income.
Founded in 2000, Portware is a leading provider of execution management systems (EMS) to global financial institutions. The company is the only EMS provider to combine artificial intelligence, visualization, algo and commission optimization tools for real-time decision support. Portware Enterprise is an ultra-fast, open, thinking EMS that automates and bolsters the buy side’s most complex workflows.
“We have made significant investments in our products, people and infrastructure to ensure continued success, and this transaction will further strengthen our firm as we continue to expand globally,” said Alfred Eskandar, CEO of Portware.
“Our success is rooted in our approach of collaborating with our clients to identify their unique processes, pain points and workflows and engineer the right solutions to turn their challenges into opportunities. This type of focused commitment to our clients has allowed Portware to flourish and continuously post record results over the last several years while the industry contracted,” added Scott DePetris, President and COO of Portware.
“Portware’s results-oriented management team has built an impressive track record and is respected for their unconventional thinking that drives product innovation and measurable client value,” said Jim Brown, Managing Partner of Long Ridge Equity Partners. “Their strong industry pedigree combined with the firm’s impressive global growth gives us confidence that Portware will continue to deliver the most innovative and robust trade automation solutions to the institutional trading community.”
As part of the transaction, Jim Brown will join the Portware Board of Directors. Portware will remain an independent company with majority ownership remaining with founders and the management team.
Broadhaven acted as exclusive advisor to Portware, and Morgan Lewis served as the company’s legal counsel for the transaction.
Founded in 2000, Portware LLC is the financial industry’s leading developer of broker-neutral trading solutions for global equities, futures, options and FX. With offices in New York, London, Hong Kong and Hyderabad, Portware works in partnership with its clients to create highly integrated solutions to streamline workflows and increase operational efficiencies on trading desks worldwide. Portware’s flagship product, Portware Enterprise, is a fully customizable trade management and execution system for single stock, portfolio, basket, automated and algorithmic trading. For more information, please visit www.portware.com.
About Long Ridge Equity Partners:
Founded in 2007, Long Ridge Equity Partners is a private investment firm focused on the financial services industry. Leveraging deep sector knowledge and an extensive network of industry resources, Long Ridge serves as a value-added partner to high-growth financial services businesses. Long Ridge places a strong emphasis on partnership with management, focusing heavily on aligned incentives through equity participation. Long Ridge actively seeks growth capital and special situations investments in a range of financial sub-sectors including financial technology, business services, and specialty finance. For more information, please visit www.longridgecap.com.