Capabilities

Electronic Trading

The electronic trading team brings significant, practical experience to the trading process. We have significant background in quantitative analytics and technology and are a leading voice in market structure.

Our interests are 100% aligned with the institutional equity customer.

  • No proprietary trading or alpha generating technology
  • No electronic market-making
  • No dark pool
  • No transmittance of IOI’s

Anonymity

Order details (size, strategy, urgency) are protected from exchanges, dark pools and market-makers, minimizing information leakage and optimizing liquidity sourcing.

Quantitative Focus

We are on the cutting edge of quantitative research with a focus on market microstructure, portfolio execution optimization, anti-gaming, short term alpha modeling, and execution optimization.

Data Driven

We analyze execution quality on the parent and child order level.  At the parent order level, we analyze performance versus execution benchmarks while at the child order level venue toxicity both on a real time and post-trade basis.  On a liquidity venue by venue basis, we measure slippage versus arrival price, slippage versus an average price at different intervals before and after each execution, short term momentum, reversion, fill rate, bid to ask spread and average execution size.

Exceptional Consulting

We take a high touch approach to customer service, designed to be proactive and consultative.

Customization

We work directly with clients to customize the trading technology for their specific needs, and unique trading situations.

Algorithmic Suite

TWAP

Executes desired quantity at a constant rate over a user-defined interval

VWAP

Creates a pre-trade schedule based on historical volume patterns and targets the volume weighted average price

POV

Tracks and reacts to real-time market volumes to target a user-defined participation rate or participation range

IS

Minimizes risk-adjusted trading costs relative to the arrival price and dynamically adjusts aggression as a function of real-time market conditions

CLOSE

Minimizes risk-adjusted trading costs relative to the closing price by creating a back-weighted trajectory

SEEK

Intelligently executes in either or both displayed and non-displayed liquidity venues based on a user-defined aggression level

DIRECT

Route to a user-defined destination

BEST

Opportunistically adapts strategy and parameters in real time based upon stock price movement versus expected impact, user defined aggression and intra-day stock price prediction

STAGGER

Seeks liquidity by scaling user-defined price increments away from limit price through a user-defined liquidity seeking strategy

SWEEP

Seeks liquidity by aggressively routing orders one price level at a time until reaching a user-defined limit price and posting residual balance at limit

Portfolio Trading

Effective portfolio trading requires both experienced personnel and sophisticated trading technology. We have a veteran trading team, each with a significant background in quantitative analytics and technology.

Throughout the portfolio trading execution process, we work closely with the client. First we review and discuss the client’s investment strategy, objective and benchmarks. Next, we develop execution strategies specific to the customer needs utilizing Cowen’s sophisticated, quantitative analytical tools. We then provide fully transparent execution reports and a post-trade review.

Cowen 360

Cowen 360 is an efficient post-trade allocation tool providing investment advisors the ability to compare, settle, and clear across multiple sponsor platforms while trading aggregated orders with a preferred execution counter-party.

  • Trading/Operational Efficiency:  By consolidating trading and clearing to one single counter-party from multiple sponsors, bandwidth of the trading desk is freed up to perform more effective, tradeoriented tasks to enhance overall fund performance.
  • Superior Execution Quality:  By solving for the issue of equality and operational efficiency, the buyside’s trading desk can subsequently focus attention on adding more value to the trading function.
  • Eliminates need for sponsor rotation which:
    • Mitigates price dispersion
    • Ensures uniform performance across sponsors
    • Removes concern of advantaging one sponsor over another
  • Automates the manual step-out and aggregation process when trading with a preferred execution broker allowing:
    • Trading and Clearing with only one counter-party vs multiple sponsors
    • All multi-sponsor clearing responsibilities to reside with Cowen 360

 

  • Streamlines comparison, clearing, and settlement for ACT, OCS, and DTC delivery
  • Provides a customizable web-based solution which:
    • Delivers transparency of all trade and clearing activity, both current and historical
    • Processes automated e-mail notifications of step-outs to sponsors
    • Manages CCA/CSA commission credits and disbursements
  • Competitive Positioning:  By improving execution quality across customers, the buyside increases its value-added proposition to current and prospective sponsors.
Insights & Commentary

Market Structure

Mar 14 2017

Finding Differentiated Liquidity in the Dark

In today’s incredibly interconnected markets, it’s a common assumption that all firms are pretty much routing orders to many, if not most venues. Liquidity seems largely transient from one venue to another depending on fees, rebates, ownership structures, client instructions and other key factors. Dark venues are no exception to this rule. In short, firms have developed sophisticated routing strategies to effectively glue this highly fragmented market back together.

Leadership

The algorithmic trading team brings significant, practical experience to the trading process. We have significant background in quantitative analytics and technology and are a leading voice in market structure.

General Contact

Sales
T 646 562 1525
algosales@cowen.com 

Electronic Desk Support
T 212 316 0401
algosupport@cowen.com

Technical Support
T 646 562 1075
fix@cowen.com