BNY ConvergEx Group, a provider of global agency brokerage and investment technology solutions, has launched Apex (Analytical Portfolio Execution), a new portfolio algorithmic optimiser designed to offer portfolio managers customised strategies that improve their execution decisions in tricky markets, such as those seen in recent months.
Apex combines a dynamic implementation shortfall portfolio algorithm with sophisticated metrics to create a comprehensive strategy that identifies optimal trading rates in real time as market conditions evolve.
Backed by proprietary financial engineering technology, Apex uses forward modelling methodology that BNY ConvergEx says effectively minimises market impact and portfolio risk at a selected level of risk aversion and provides smooth, stable adjustments to the trading rate over time.
During the trading day, actual daily volume and volatility measures can substantially alter optimal percentage of volume trading rates, a challenge Apex resolves by re-optimising with current market data every two minutes.
Apex works in combination with several components of the ConvergEx suite of Liquidity Management Technologies to help optimise execution strategies. It first dynamically interacts with the ConvergEx Cross to identify a possible trading match. If none is found, it will next explore VortEx, the ConvergEx dark liquidity pool.
'Our primary mission as a firm is to be a leader in innovation in the trading and investment technology space by creating new and different products that both anticipate and keep pace with what our clients need to compete in today's dynamic markets, and Apex certainly encapsulates that,' says BNY ConvergEx chairman and chief executive Joseph M. Velli.
'Accessed through our ConvergEx Program Trading Desk, Apex provides another advanced tool to help clients optimise their trading strategies while reducing operational risk and execution costs. Together with our other powerful liquidity management technologies, Apex offers a robust, dynamic addition to our clients' execution choices.'
Carey S. Pack, president of BNY ConvergEx Execution Solutions, adds: 'With current market conditions bringing increased pressure on portfolio managers and other institutional investors to change strategies more frequently to reach their investment objectives, the importance of a portfolio algorithmic optimiser with the strength of functionality of Apex has grown increasingly vital.'
BNY ConvergEx provides institutional agency brokerage and investment technology solutions designed to deliver a comprehensive, integrated approach to the investment cycle, from idea generation and trade execution to clearance and settlement. The firm offers a broadly diversified suite of services providing solutions in liquidity and execution management, investment technologies, transition management, research and commission management, and intermediary and clearing services.
The BNY ConvergEx Group, a subsidiary of Bank of New York Mellon, consists of BNY ConvergEx Execution Solutions, including BNY Global Transition Management and LJR Recapture Services, LiquidPoint, BNY Jaywalk, ConvergEx Global Markets, Eze Castle Software, Eze Castle Transaction Services and Westminster Research Associates.