New Stock Trading Tools
As automated trading continues to gain popularity in the world's markets, Deutsche Bank has unveiled new stock trading tools that seek to mimic high-speed market-making strategies. Their new algorithm is a revised version of the bank's previous Stealth product.
It will use models that predict price changes over a period of microseconds along with complex quantitative tools that are designed for institutional clients like mutual and pension funds. These traditional investors have feared that high-frequency trading firms are taking the best prices from public markets, with many citing it as their top concern. One solution has been the development of dark pools and block-trading venues like Liquidnet and Pipeline, that allow institutions to trade amongst themselves to avoid the high-speed market makers in the public markets. However, banks are taking the attitude that if you can't beat them, join them, and developing their own algorithmic tools for large block trades.