Two years ago, we wrote a blog post, M-ELO Shows Signs of Better Quote Stability Than Other Nasdaq Passive Order Types, concluding M-ELO was a viable option for midpoint liquidity because of its lasting quote stability post-execution compared to other Nasdaq midpoint order types.
A critical component that determines an algorithm’s success in sourcing liquidity is how it rebalances—or decides which venues to route to based on where it already sent orders and received fills. Many algorithms claim to "intelligently" source liquidity but still rely on static previous-fills heatmap data. However, if you use a genuinely dynamic Liquidity Awareness Signal, it's possible to achieve a nearly 500% improvement in hit rates for midpoint orders*.
For the first time in 20 years, we witnessed a Level 1 cross-market trading halt on March 9, 2020. It was followed by three more days where the Level 1 market-wide circuit breakers (MWCB) were triggered and the markets halted due to significant market declines with the potential of exhausting market liquidity.
As we enter the season of market structure conferences, we are sharing Clearpool's annual Market Structure Viewpoints—our view of some of the most pressing equities market microstructure matters that support transparency and fair and equitable access to our markets.
By definition, rebalancing—also known as reloading—is an algorithm's ability to dynamically respond to source additional liquidity based on its assessment of the liquidity landscape after its baseline route to the “Street”.
The traditional relationship between the buy side and the sell side is in flux. With factors such as the unbundling of research and execution dollars, the democratization of equities trading technology offerings, and new and more dynamic regulatory requirements, the usual paradigm between brokers and clients has been drastically changed. Brokers’ clients have evolving needs and they face shifting challenges, which necessitates a corresponding change in how the sell side serves them. So, in this new landscape, what traits does the buy side look for in their brokers, and how do brokers differentiate themselves and demonstrate unique value?
Clearpool was awarded Best Algorithmic Trading Provider at the 17th annual Waters Rankings that took place at the Manhattan Penthouse on July 10, 2019. Accepting the award at the ceremony, Brian Schaeffer, Clearpool's Co-Founder and President, said "We are humbled and honored to receive this recognition. This is a testament to all the hard work the dedicated team at Clearpool has put in to bring our truly unique trading solutions to market."
On April 25th, 2019, Clearpool was named “Best Company” in the Algorithmic Trading Category as part of the 2019 Markets Media Choice Awards. Accepting the award on behalf of Clearpool, founders Joe Wald, Brian Schaeffer and Ray Ross are excited to celebrate such an honor, noting that Clearpool wouldn’t be what it is today without the dedication of the broader team.
If you remember GI Joe, you may also recall every episode ending with GI Joe saying, “Knowing is half the battle.” The idea put forth was that “knowing” was the impetus of change. Change that would lead to a better outcome because of the lesson that was learned.