Alpha capture system
An alpha capture system is a computer system that enables investment banks and other organizations to submit "trading ideas" or "trade ideas"[1] to clients in a written electronic format, for example TIM Group's TIM Ideas product or Bloomberg LP's Trade Ideas product.[2]
Introduction
[edit]Financial Services Authority Markets Division: Newsletter on Market Conduct and Transaction Reporting Issues, Issue No. 17, September 2006,[3]
First used in 2001 by Marshall Wace[4] they are an alternative to the traditional stockbrokering approach of communicating ideas and strategies to clients face-to-face or over the telephone.[3]
Terminology
[edit]The term alpha capture refers to the aim of such systems to help investors find alpha or market-beating returns on investments.[5]
Submitted trade ideas are accompanied by a rationale, timeframe and conviction level and enable investors to quantify and monitor the performance of different ideas.[4]
See also
[edit]References
[edit]- ↑ Archived 2013-09-29 at the Wayback Machine TIM Ideas
- ↑ "What is Options Trading?". Retrieved 2023-08-02.
- 1 2 Market Watch, retrieved 8 January 2009
- 1 2 Wall Street Redefined by Bill Alpert, First Coverage, retrieved 8 January 2009
- ↑ "Precision Trading & Dynamic Risk Management". 2023-12-11. Retrieved 2024-05-23.
External links
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