Innovative Algorithm Offers Portfolio Traders the Power of Dark Liquidity

NEW YORK, Oct. 19, 2011 /PRNewswire/ -- ConvergEx Group, a leading technology company, today announced the launch of Spectrum, a new algorithm that gives portfolio traders the benefits of executing in a diverse array of domestic dark venues, while allowing them to maintain their required cash and sector balances.  Designed by ConvergEx's dedicated team of financial engineers, Spectrum enables users to trade cash neutral in the dark.

"For moving large orders with minimal market impact, dark liquidity is simply invaluable.  However, portfolio traders, with their need to precisely manage risk and cash balances, have been virtually excluded from leveraging these dark pools. The timing and velocity of the dark pool fills is simply too random for their heterogeneous baskets," said Scott Daspin, managing director in the Electronic Execution group at ConvergEx.  "But with Spectrum we are now giving them the power to operate in the dark."

"Spectrum is driven by ConvergEx's state-of-the-art risk management engine and works by making thousands of order placement decisions every second. It optimizes execution performance by providing midpoint or better pricing, while simultaneously monitoring risk management and cash balance parameters," said Gary Ardell, head of the Financial Engineering & Advanced Trading Solutions group at ConvergEx.  "Spectrum represents truly innovative technology put to use in the pursuit of superior performance."

The strategy offers three separate cash objective options based upon customers' preferred level of cash constraints. It supports three distinct settings for risk management and is fully-configurable to meet customers' selected level of risk aversion.

Spectrum's proprietary technology and methodology also offer a sophisticated, web-based performance interface that tracks user performance throughout the life cycle of each execution. It empowers both low-touch and high-touch users with the ability to dynamically modify portfolio executions throughout the trading day.

This is the first in a series of portfolio algorithms ConvergEx plans to roll out.

About ConvergEx Group

ConvergEx Group is a leading technology company providing mission-critical proprietary software products and technology-enabled services to asset managers and financial intermediaries globally.  Its products and services span the investment life cycle and are designed to enable customers to achieve improved results through operational and workflow efficiencies, execution and analytical tools and highly personalized service. The firm serves customers accessing over 100 global markets.  Formed in 2006, the firm has over 1,200 employees in 22 locations throughout the U.S., Europe, Asia, Australia and Africa.

BNY ConvergEx Group, LLC is comprised of the following businesses: BNY ConvergEx Execution Solutions LLC (member NYSE/FINRA/SIPC), LiquidPoint, LLC (member CBOE/SIPC); Eze Castle Transaction Services LLC (member FINRA/SIPC); Westminster Research Associates LLC (member FINRA/SIPC); G-Trade Services LLC (member FINRA/SIPC); NorthPoint Trading Partners, LLC (member FINRA/SIPC); Eze Castle Software LLC,  RealTick LLC and ConvergEx Research Solutions LLC, of which Jaywalk, Cogent Consulting and LDB are divisions.   Additional information is available at www.convergex.com.

Contact:

Elizabeth Anderson
EAnderson@convergex.com
212.468.7713

SOURCE ConvergEx Group