Deutsche Bank Launches Automated Equity Trading System and Liquidity Algorithm in Hong Kong
Deutsche Bank announced today it has launched an automated equity trading system in Hong Kong that allows client orders to be matched against other client and internal orders. Known as the Deutsche Bank Automated Trading System (DBATS), it is being made available concurrently with a dark liquidity-seeking
algorithm, SuperX, which gives clients access to Asian ‘dark pools’ (off-exchange crossing networks).
Both DBATS and SuperX provide access to Hong Kong equities and are available either through Deutsche Bank’s equity sales desk, portfolio trading desk or Autobahn Equity, Deutsche’s leading electronic equity trading platform.
Mark Davis, Head of Equity and Equity-Linked Execution for Asia Pacific, said: “DBATS and SuperX form part of an ongoing commitment to give our clients the liquidity they need in today’s volatile markets. This initiative is further evidence of the ongoing investment in our Asian equity execution platform.”
Deutsche Bank’s SuperX algorithm has grown to become a leading portal for clients to access multiple dark pools in the United States and Europe. The aim is to emulate this for SuperX in Asia, with an announcement on new dark pools available through the platform to be made in the coming weeks.
Greg Lee, Head of Autobahn Equity, Asia said: “Introducing SuperX simultaneously with DBATS gives our clients a unique way to access dark liquidity with a high degree of trade control and anti-gaming protection. We aim to grow SuperX into Asia’s leading source of dark liquidity.”
The SuperX algorithm uses a quantitative approach to anti-gaming to prevent client orders being traded at artificially adverse prices. SuperX also aims to improve clients’ access to liquidity via a pool ranking model that ranks liquidity on a real-time and historic basis to determine optimal dark sources for a given order; a smart allocation model that balances optimal fill probability versus the total cost of execution; and performance reports that allows clients to monitor the efficiency of their execution.