Convergex's Options Division Launches Multi-Leg Capital Commitment Crossing Algos

Feb 29 2016 | 6:27pm ET

Global brokerage and trading services provider Convergex has launched a new suite of multi-leg capital commitment crossing algorithms to facilitate the process of liquidity providers committing capital to, and executing block trades on behalf of, their customers. 

The company’s new algorithms were designed to streamline the process of sourcing additional liquidity and price improvement, while also giving traders the ability to choose different “touch rate” paths in order to more effectively manage risk and capital usage, according to a company statement. 

The new algorithms include some innovative features, including sweeping of all complex order books, interaction with all complex order auctions, and the ability to simultaneously direct crossing orders to multiple exchanges.

“Convergex is once again ahead of the curve in offering this new suite of multi-leg capital commitment crossing algos,” said Ben Londergan, executive managing director of options trading and technology at Convergex, in the statement. “We responded to feedback from our clients and created multi-leg crossing algos to enable them to customize their interactions with the marketplace when facilitating customers’ options orders.”

The company’s options division has seen tremendous growth over the past year, reaching a one-day record on February 19 when 2.71 million options contracts traded, representing over 15% of the total U.S. listed equity options volume for that date.

In addition, year-to-date, Convergex has seen an increase in its average daily options volume of almost 45% in comparison to 2015 total average daily options volume, the company said.

Headquartered in New York, Convergex is an agency-focused global brokerage and trading-related services provider serving early 3,000 clients and accessing over 100 global market centers. Convergex’s services span global high-touch and electronic trading, options technologies, prime brokerage, clearing, and commission management.


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