Convergex Introduces Capital Commitment Crossing Algorithm

New options algorithm offers liquidity providers choice of "Minimum" or "Maximum" touch rate

Aug 05, 2015, 14:22 ET from Convergex

NEW YORK, Aug. 5, 2015 /PRNewswire/ -- Convergex, an agency-focused global brokerage and trading related services provider, today announced its new Capital Commitment Crossing Algorithm for options facilitation trading.

This innovative algorithm gives liquidity providers a new level of control over how they manage their own exposure as they facilitate block trades on behalf of their options customers.

Liquidity providers can use the Capital Commitment Algorithm to customize their interaction with the marketplace when facilitating customers' options orders, taking into account factors such as the price committed to such customers and the liquidity providers' existing positions or capital constraints.

"We're pleased to be able to respond to client demand for more control over how they facilitate options orders on behalf of their own customers," said Ben Londergan, Convergex executive managing director and Head of Options Trading and Technology. "This cutting-edge algorithm allows institutional desks to put up their customer facilitation options trades electronically with a new level of customization."

The Capital Commitment Crossing Algorithm offers two different "touch rate" paths for liquidity providers to manage how much of a given block trade they internalize:

  • (CAPMAX) Maximum Cross – Used to maximize touch rate, this option allows traders to sweep all protected quotes before proceeding to facilitate the balance of a block order at one or more exchange auctions; or
  • (CAPMIN) Minimum Cross – Used to minimize touch rate, this option utilizes Convergex's high-powered Pulse™ options algorithm to source as much liquidity from the open market as possible before facilitating the balance of the block order.

About Convergex
Convergex is an agency-focused global brokerage and trading related services provider that takes on the industry's toughest challenges, from complicated trades to complex businesses. With clients' interests as the top priority, Convergex delivers comprehensive solutions that span global high-touch and electronic trading, options technologies, prime brokerage, clearing, commission management and beyond. Headquartered in New York with a presence in several other locations including Atlanta, Boston, Chicago, Orlando, San Francisco and London, the company serves nearly 3,000 clients accessing over 100 global market centers.

Important Information

Convergex is an agency-focused global brokerage and trading related services provider. In the U.S., Convergex offers products and services through Convergex Execution Solutions LLC (member NYSE/FINRA/NFA/SIPC), of which Convergex Prime Services is a division; Westminster Research Associates LLC (member FINRA/SIPC); and Convergex Solutions LLC, of which Connex, Jaywalk and LDB are divisions. In London, Convergex operates through Convergex Limited, which is incorporated in England and Wales (registered with company number 06262150). Convergex Limited is authorized and regulated by the Financial Conduct Authority (FCA) of the United Kingdom.

Convergex provides brokerage services primarily on an agency basis, but may operate in a riskless principal and/or net trading capacity, and in connection with certain ETF or ADR transactions, may act as principal or engage in hedging strategies. Convergex does not engage in market making or investment banking activities, other than as a selling group member.

Please be advised that options carry a high level of risk and are not suitable for all investors. To receive a copy of the Options Disclosure Document please contact the Convergex Compliance Department at (800) 367-8998.

The material, data and information (collectively "Convergex Information") that is available from Convergex is intended for institutional investor use only; is for informational purposes only; is subject to change at any time; is not intended to provide tax, legal or investment advice; and does not constitute a solicitation or offer to purchase or sell securities. Convergex Information is believed to be reliable, but Convergex does not warrant its completeness or accuracy and Convergex assumes no duty to update such information. Clients should read their account agreement(s) and documentation with Convergex carefully as those documents contain important information and disclosures about the products or services covered thereby. Convergex is not responsible for third-party information or services, including market data from the exchanges. (Rev. 4/1/15)


Michael Kingsley


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