Nomura Introduces New Trading Algorithm, SmartSeekTM
New York, April 21, 2010 – Nomura Securities International, Inc. has introduced a new tactical trading algorithm, "SmartSeekTM" which offers an advanced degree of control while trading both lit and dark markets. SmartSeekTM is based on an opportunistic liquidity-seeking model that dynamically evaluates market conditions and reacts to the availability of favorable trading opportunities to achieve a balance between minimizing impact and maximizing order completion.
The SmartSeekTM algorithm supports a wide range of order placement tactics ranging from posting passively within the order book locating hidden liquidity at the mid-price within dark pools to grabbing liquidity aggressively. Traders can modulate the behavior of the strategy through an aggressiveness parameter and specify other trading constraints such as maximum volume participation rates, minimum fill requirements and trade interval settings.
The algorithm incorporates Nomura's advanced "SmartDarkTM" technology to determine the optimum policy to post and reallocate orders in dark pools based on real-time estimates of hidden liquidity and adverse selection within each pool. It also leverages Nomura's Smart Order Router logic to intelligently distribute orders to lit markets and access hidden and reserve orders, while ensuring minimal information leakage.
The SmartSeekTM algorithm is part of Nomura's global algorithmic product suite, ModelExTM, and has been extensively tested by the firm's internal trading desks over the past several months and is now available to its electronic clients. "SmartSeekTM represents an exciting new addition to Nomura's electronic suite," said Amit Manwani, Nomura's US head of agency program and electronic trading. "It will enable traders that are not benchmarked to any specific trading style to benefit from our high frequency alpha engines and order placement tactics to opportunistically source liquidity from all available destinations. It has had great success with our internal trading desks and we hope our electronic clients can benefit from it as well."
Under Mr. Manwani's guidance , Nomura's electronic trading team, over the past twelve months, has focused on delivering advanced electronic trading products to the US market, positioning Nomura as a major competitor in the electronic space both in the US and globally. Globally, Nomura's electronic trading team consists of about 50 quantitative analysts and product specialists and more than 30 technology developers, delivering electronic solutions for clients to execute in over 40 countries around the world.
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For further information please contact:
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| Name | Company | Telephone |
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| Peter Truell | Nomura Holding America Inc. (Americas) | +1 212-667-9971 |
| Felicity Albert | Nomura (EMEA) | +44 (0) 20 710 21756 |
| Vanessa Wall | Nomura (Asia) | + (852) 2536 1022 |
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Nomura
Nomura is a leading financial services group and the preeminent Asian-based investment bank with worldwide reach. Nomura provides a broad range of innovative solutions tailored to the specific requirements of individual, institutional, corporate and government clients through an international network in over 30 countries. Based in Tokyo and with regional headquarters in Hong Kong, London, and New York, Nomura employs over 26,000 staff worldwide. Nomura's unique understanding of Asia enables the company to make a difference for clients through three business divisions: retail, wholesale (global markets, investment banking, and other wholesale), and asset management. Nomura's subsidiaries in the US include Nomura Securities International, Inc. and Nomura Securities North America, LLC, its investment banking arms in the United States, and members of SIPC. For further information about Nomura, please visit www.nomura.com.
