Joseph Wald, CEO & Founder
The adoption of electronic trading and the current regulatory environment requires buy side traders to demand more control and transparency over their order routing protocols. Many of their sell side brokers are unable to offer complete control and transparency because of their use of legacy algo solutions, execution of rigid routing protocols, very little customization of algorithmic strategies, and their electronic offerings are built on antiquated hardware infrastructures.
“These challenges have opened the door for innovative trading technologies to offer relevant, agile, and real-time electronic trading solutions to market participants,” connotes Joseph Wald, CEO, Clearpool Group. Clearpool’s Algorithmic Management System (AMS) transforms electronic trading with a fully customizable suite of algorithmic trading tools, offering total visibility, and control from strategy to execution.
Providing total transparency and ultimate routing control, the Clearpool AMS is a “different category of trading technologies,” highlights Wald. “Clearpool AMS is a complete cloud-based algorithmic trading platform that provides our clients pre-trade compliance, risk checks, custom configurability of algorithmic strategies and routing protocols, and advanced analytics throughout the electronic trade lifecycle.”
The Clearpool AMS adds up to the client basically having their own electronic trading platform. “It is not built on legacy platforms and infrastructure, but utilizes Web 2.0 technologies, using different construction patterns and delivery methodologies from a cloud-based perspective,”states Wald.
Through AMS’ unparalleled control capabilities, the sell side in collaboration with their buy side clients are able to customize “unique algorithms for individual goals in as many different ways and for as many different strategies, to control and proactively manage costs and the execution quality of their orders,” explains Wald.
Transparency, trust and control in algorithmic trading
“The platform is designed for a trader to access the AMS client portal to configure and deploy strategies across their broker network. It does not need a developer or specific languages. It is all point-and-click, drag-and-drop, and easy-to-understand web-based nomenclature that allows you to customize algorithmic strategies in minutes,” Wald extols.
A unique feature to the AMS is the Automated Aggregation Intelligence (AAI). AAI decouples algorithmic orders from their parents. Orders are aggregated into one order and without bias are worked together to optimize queue placement and liquidity capture. In most cases, if two clients send orders at the same time, other platforms will work the orders independently potentially missing out on liquidity because independently the orders do not meet minimal order quantities for certain venues. Aggregating the orders allows liquidity sourcing from a greater number of venues, including conditionals. AAI delivers greater access to liquidity and better execution for all participants. “It is built for strength and numbers, rather than just speed alone,” asserts Wald.
Rounding up Clearpool’s offering is Clearpool Execution Services (CES), the company’s independent, agency broker-dealer. CES provides broker neutral access to liquidity, claiming no ownership of any exchanges and no market making business. Moreover, Clearpool’s real-time analytics provide the transparency that imposes a certain level of trust all around, with no mysterious box where data is seen only after a trade. “This is happening real-time, and it’s a whole different conversation,” says Wald. Clearpool takes pride in their service, with a fully staffed team of microstructure experts that are there to hold the hands of their clients and lead them through the platform.
Clearpool intends to continue to build out their core offering and adapt to the ever-changing environment. “The market is going to be incredibly dynamic in terms of the changes to the structure, and we are going to be at the forefront of those changes and offer technologies that really cater to our clients that deliver transparency, trust, and control in algorithmic trading,” concludes Wald.