At ITG's client conference here, David Leinweber, CEO of Codexa, and Ananth Madhavan, Managing Director of ITG, unveiled an extended version of ITG's Quantex system that allows computer savvy traders to apply a broad new range of information provided by Codexa in the electronic trading strategies used by their institutional clients. This group includes the world's largest active and passive equity fund managers. Large institutional players need new techniques to cope with the new types of information, and the faster dissemination of traditional information. Quantex is the most sophisticated tool available for real-time analysis of market data. Now the link to Codexa provides these new capabilities.
Larger volatility is associated with less liquidity and higher price impacts.
To our clients, this can amount to millions of dollars in hidden transaction costs that come right off their bottom line performance. Our research showed that we could develop quantitative trading programs that use Codexa data to better manage risk and control execution costs. Leinweber and Madhavan have also studied the darker side of the new relationships between the Web and the markets. ITG and Codexa's new generation of information tools provide a means for professional investors to protect themselves from the notorious activities of web manipulators, as well as allowing them to operate more effectively in normal markets. Both Codexa and ITG are committed to utilizing technology to improve the capital markets process.