Deutsche Bank has launched an automated equity trading system Deutsche Bank Automated Trading System (DBATS) in Hong Kong that allows client orders to be matched against other client and internal orders.
Deutsche Bank said that the DBATS will be available concurrently with SuperX, a dark liquidity-seeking algorithm, which gives clients access to Asian ‘dark pools’ (off-exchange crossing networks).
According to the Deutsche Bank, both DBATS and SuperX provide access to Hong Kong equities and are available either through bank’s equity sales desk, portfolio trading desk or Autobahn Equity, the banks’ electronic equity trading platform,
Deutsche Bank equity and equity-linked execution head for Asia Pacific Mark Davis said that DBATS and SuperX form part of an ongoing commitment to give our clients the liquidity they need in today’s volatile markets.
Deutsche Bank has claimed that the SuperX algorithm uses a quantitative approach to anti-gaming to prevent client orders being traded at artificially adverse prices.
SuperX also intends to enhance clients’ access to liquidity via a pool ranking model which 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.
Deutsche Bank Autobahn Equity Asia head Greg Lee said that 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.