Products October 18, 2005

NJ Firm Produces Corporate Buyback Algorithm

October 18, 2005 (PLANSPONSOR.com) - A Newark, New Jersey broker dealer has unveiled a menu of algorithmic best execution solutions which includes a corporate buyback algorithm.
Reported by
Add as a preferred source on Google

A news release from TradeTrek Securities said the buyback algorithm is designed to adhere to SEC Rule 10b-18 while minimizing market impact, reducing information leakage and obtaining optimal pricing.

To comply with best execution requirements, investors are adjusting their trade execution strategies and employing algorithmic – or rule-based – engines designed to electronically interact with the new market model.

For more stories like this, sign up for the PLANSPONSOR NEWSDash daily newsletter.

Corporate buybacks are unique in that trades are subject to SEC Rule 10b-18 requirements which include timing, price and volume conditions. To insure 10b-18 compliance and get best available execution pricing, issuers will need to select a broker experienced in algorithmic order placement and electronic execution, according to the announcement.

More information is at  www.algorithmtrading.com .

«