Traders Magazine
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Eric Stockland, managing director in electronic trading at BMO Capital Markets, said the buy side should ask brokers to experiment with their algo wheels in order to incentivize innovation.
Stockland spoke at TraderForum’s annual member conference on the broker perspective on the implementation of algo wheels.
Algo wheels are an automated routing process which assigns orders to a broker’s algo based on the best fit to a preset list of conditions and have helped the buy side to implement a more systematic approach to trading.
Brokers have to compete for a place in the wheel based on the quality and execution performance of their algorithms.