Citi has added intelligent options algorithms for U.S. equity options to its suite of advanced electronic trading strategies.

The algorithms are intended to provide traders with speed, liquidity and the desired degree of exposure, using Citi’s proprietary smart routing logic, which provides liquidity and price improvement while avoiding information leakage.

“The intended users of the new option algos are buy-side traders looking to intelligently work option orders systematically using Citi’s advanced algorithmic logic,” said Kevin Murphy, head of U.S. options electronic execution at bulge bracket bank Citi. “Traders get the added benefit of having each ‘child’ order eligible for liquidity and price improvement opportunities via Citi’s proprietary smart order router.”

Platforms combining execution, analytics and risk management have become the de facto standard of care for market practitioners as algorithmic and high-frequency trading strategies have proliferated across asset classes.

Fellow bulge bracket bank Credit Suisse recently launched in the Asia-Pacific region AES Guerrilla 2012, an agile trading strategy to assist investors in sourcing liquidity.

Credit Suisse’s AES, or Advanced Execution Services, team developed Guerrilla 2012 for clients trading in Asia-Pacific equity markets, whether they are calm or volatile, liquid or illiquid.

“Guerrilla has long been one of the most popular trading strategies in the U.S. and Europe, and now Guerrilla 2012 brings our algorithmic offering to clients in Asia,” said Hani Shalabi, head of AES for Asia-Pacific at Credit Suisse. “This is one algorithm which is flexible and intuitive enough to adapt real time to current market conditions.”

The options space is a comparatively late arrival to cutting-edge trading techniques, but it is catching up. Continue reading →