Case Study I : A convertible and volatility arbitrage hedge fund

• Three strategies: Convertible arbitrage, synthetic option replication and volatility surface relative value.
  
• Use Execta for opportunity detection, trade-execution related to new positions & automated hedging and risk management. Arrival price benchmark.
  
• A significant amount of trading. Spread over potentially > 50 names and quantities from 1,000 to 15,000 shares per order. Most trades need to be done quickly.
  
• Real-time and historical TCA helps adjust the execution algorithm to position, security and market-characteristics.
  
• Use customized minimum-time (EMINI) algorithm. Results:

Case Study II : A large multi-portfolio investment manager

• Primarily long only, but with a growing long-short managed account business.
  
• Trades large percentage of period volumes.
  
• Risk (list-integrity), information leakage, data gathering difficulties because platform multiplicity and overall costs were big issues.
  
• Tethys worked with the client and put in place historical and real-time TCA capabilities and developed optimal trade-execution strategies which adapt to changing market-conditions and trader-views.
  
• Helps client identify best-of-breed broker algorithms.
  
• Today the client is able to control execution to the desired detail by controlling the exposures while trades are being executed.
  • System releases orders to various execution destinations when risk constraints permit. Thus, no single execution destination is able to see the entire order.
    
  • Receives real-time feedback and is able to take control of problematic trades.
    
  • Straight-through-processing to client’s back-office systems has been achieved.