SOURCE: Pipeline Trading Systems

January 04, 2010 13:08 ET

Pipeline Announces Munitions Manager for the Buy-Side

New Strategy Enables Traders to Take Advantage of Price Improvement or Block Liquidity Opportunities While Ensuring the Timely Completion of the Trade

NEW YORK, NY--(Marketwire - January 4, 2010) - Pipeline Trading Systems, a leading electronic brokerage for institutions, announced today it has launched Pipeline Munitions Manager(SM), a tool for minimizing implementation shortfall losses in markets with high risk of adverse information. The new strategy assists traders in maximizing leverage of their primary weapon -- their sole knowledge of the full size of a large order -- in pursuit of a best price objective.

Unlike volume participation or VWAP strategies, Munitions Manager is designed to achieve best price, not to track or forcibly create a VWAP benchmark. It is not defined by rigid a-priori constraints on volume participation, but decides how many shares to release based on the current market conditions and completion objective. The strategy manages shares (or "ammunition") to capitalize on both price and liquidity opportunities.

"Munitions Manager aims to beat the average price benchmarks by managing tactical limits dynamically to capture optimal price points," said Henri Waelbroeck, Pipeline's Director of Research. "It complements the predictive algorithm switching based on real-time market conditions. While algorithm switching handles the decisions on how to best interact with the dynamics of the order flow in a complex market structure, the munitions management approach implements the trader's longer term objectives for the execution of the whole order -- exceeding performance expectations has never been easier."

Munitions Manager is currently available and has been successfully deployed with several buy-side firms.

About Pipeline

Pipeline enables block traders to optimize the execution of large orders while denying competitors the information needed to take advantage of them. Pipeline is the only block execution system that combines the high probability of block liquidity with the unmatched performance of predictive switching between best of breed algorithms. The Pipeline system delivers statistically significant increases in execution performance in the face of increasingly sophisticated predators. Pipeline is headquartered in New York with offices in Boston, Chicago, San Francisco and London. Pipeline is a member of FINRA and SIPC. For more information, visit http://www.pipelinetrading.com.

Contact Information

  • Contact:
    Brian Holland
    Pipeline Trading Systems LLC
    (212) 370-8326
    Email Contact

    Bill Haynes
    BackBay Communications
    (617) 556-9982 x224
    Email Contact