A buy-side handbook
Published by The TRADE
in association with:
1 Sekforde Street
Tel: +44 (0) 20 7075 6115
©The Trade Ltd. London 2005.
Although The Trade has made every effort to ensure the accuracy of
this publication, neither it nor any contributor can accept any legal
responsibility whatsoever for consequences that may arise from errors
or omissions or any opinions or advice given. This publication is not a
substitute for professional advice on a specific transaction.
No reproduction allowed without prior permission.
Graphic design by Tina Eldred
■ ALGORITHMIC TRADING
■ A BUY-SIDE HANDBOOK
■ THE TRADE 2005
■ A buy-side handbook
Differentiating between the algorithmic trading offerings of brokers
remains a problem for the buy-side. At the same time, brokers are
searching for ways to achieve competitive edge and raise the profile of
their algorithmic trading capabilities. These issues have to be overcome to
realise the exponential growth that is forecast for algorithmic trading.
The TRADE in association with leading industry participants drawn
from the brokerage and vendor communities has set out to bring clarity and
thought-leadership to the issues that are driving developments in the algo-
rithmic space by publishing ‘A buy-side handbook on algorithmic trading’.
Part 1, ‘Market and mechanics’, examines what is driving the growth of
algorithmic trading, focusing on the rapidly evolving shape of the market.
Insights are offered into how algorithms work and the relative merits of
broker-driven versus broker-neutral algorithms are quantified.
Part 2, ‘Honing an algorithmic trading strategy’, highlights the issues
that buy-side traders must address once the decision has been taken to
adopt an algorithmic strategy. Selecting an appropriate trading bench-
mark, the importance of anonymity to stem information leakage, applying
stealth through sophisticated gaming theory, and customisation of