Societe Generale, the French investment bank, says that its new “relative value” algorithm will give fund managers the ability to change their participation to a stock’s performance relative to an underlying index.
The new algorithm, which the bank says is available on most trading platforms and through a FIX engine, can notify fund managers when a stock price does not follow the performance of its underlying index. That information will allow SocGen’s clients to increase or decrease their participation. The
In a terse statement issued on Tuesday, SocGen says that the new “relative value” algorithm is part of an overall strategy to provide investors with a diverse range of algorithms driven by short term price movements.
In August, Société Générale introduced Eclipse, a new liquidity-seeking algorithm, which analyzes the quality of liquidity that can be found in dark and lit pools such as multilateral trading facilities, exchanges and broker-owned crossing engines.
To do so, SocGen will become a client of the brokers whose pools it wants to access.
-- This article first appeared on Securities Technology Monitor.