program trading


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program trading,

a form of securities trading, also known as index arbitrage. Program traders exploit the price discrepancies between indexes of stocks and futures contracts by using sophisticated computer models to hedge positions. Program trading (also called computer-assisted trading) arose with the advent of computer and telecommunication technologies, whereby trade in different markets could be monitored simultaneously and manipulated accordingly. Because the size of the transactions often caused massive jolts in the stock market, many concluded that program trading was largely responsible for the 500-point drop in the Dow Jones Industrial AverageDow Jones Average,
indicators used to measure and report value changes in representative stock groupings on the New York stock exchange. There are four different averages—industrial stocks, transportation stocks, utility stocks, and a composite average of all three.
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 on Oct. 19, 1987. During the economic recession that followed, the New York Stock Exchange put new restrictions on computerized trading, and many companies refused to do business with any brokerage house that engaged in program trading. With the unprececented growth of the stock market in the later 1990s, program trading saw a resurgence in some trading houses.
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For more information about Knight Global Program Trading, please contact global.
Program trading activity is the number of shares included in orders identified as program trades.
Respondents were asked to define program trading and index arbitrage in their own words.
Chris Johnson: Johnson will joinWells Fargo Securities as a Director and head of Program Trading Sales in early August from Weeden & Co.
This is partly because firms involved in program trading do not readily publicize the fact, and also because such figures as do exist relate not only to true program trades but also to index arbitrage and portfolio insurance.
Quant House's mission statement is to provide end-to-end program trading solutions to hedge funds, proprietary desks and asset managers to trade ahead.
SG CIB's Global Program Trading desk benefits from an internal joint venture with the firm's equity derivatives business, consistently ranked as the world's best.
Middleware(2) provides a demonstrably faster infrastructure tailored to the needs of program trading while incorporating adapters that allow InfoDyne products to be directly connected to all leading market data distribution systems.
The Passive Indication Network(TM) rounds out a comprehensive array of services offered through SSCM's Electronic & Program Trading group, which has focused on providing clients the desired level of control and decision support tools to determine the optimal balance between trader expertise and automation.
As we continue to expand our footprint in program trading and the equities business overall, we are delighted to add this exceptionally talented individual to our team.
It will initially focus on further development of customized algorithms and program trading capabilities, pre- and post-trade analytics, and expansion of other quantitative capabilities to help users of DEx (Direct Execution Services) and Sonic(TM) meet existing and emerging liquidity challenges.
CAPIS), an agency-only broker and leading independent research provider since 1977, is pleased to announce the formalization of its Program Trading desk based in Dallas, Texas.

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