Tor Brokerage has been launched as an agency only broker-dealer designed specifically to provide automated trading algorithms to its clients.
Tor was developed with the purpose of providing lower trading costs while filling high order volume.
Up until 2009 Tor was the trade execution platform for North Sound Capital, run by Tiger Management alumnus Thomas McAuley and Blue Hill.
According to Tor, cost reduction comes from two sources: lower commissions and smaller pricing slippage, which have an impact on both high turnover investment strategies and long-term benefits for lower trading frequency portfolios. The automated system adds an objective dimension to trading and offers absolute anonymity, well suited for large basket and programme trades.
Trades are input using a collection of fully automated programmes that provide participation in the opening and closing auctions for listed and Nasdaq stocks, US exchanges and ECNs reached via managed gateways to the equity markets, index futures, dynamic or static hedging of an equity position, and direct access to European exchanges.
Victor Sandor, founder of Tor Brokerage, says: “Demanding too much liquidity in a given period could move the price of that stock significantly. Care should be taken when choosing an end time and percentage of participation. The usage of price limits or volume percentage limits is recommended, especially for less liquid securities. We provide clients with tables of individual stock rankings according to market capitalisation, volatility, and average daily volumes.”
Tor Brokerage maintains FIX client connectivity and is currently available as an execution facility on the Eze Castle Transaction Services Managed Network. Tor is a correspondent of Goldman Sachs Execution & Clearing.