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Options Algorithms

Empowering You with Sophisticated Tools.

In the options marketplace, algorithms have emerged as an important strategy to compete for the best available execution price while reducing market impact. Powered by sophisticated LiquidPoint technology, our suite of advanced options algorithms delivers premier execution strategies to help you compete effectively in a volatile, evolving marketplace.

In addition to powerful market sweep capabilities, our options algorithms effectively address the complex nuances within the electronic options execution landscape, helping you to manage trading volumes and find liquidity across all exchanges, with time-released sequencing and in line with user-specified risk tolerance against market impact.

When algorithmic routing is selected, potential liquidity in NXP is referenced in addition to all listed-options execution liquidity.

Our suite of algorithms includes:

SWEEP - targets liquidity across all exchanges. Orders hit multiple markets simultaneously maximizing customer fill rates. LiquidPoint has the industry-leading fill to posted ratio, frequently exceeding 99%.  SWEEP can be customized to SWEEP and POST or SWEEP and CANCEL.

PULSE - locates and targets liquidity across exchanges and aggressively encourages orders to take available liquidity. LiquidPoint’s proprietary routing logic provides PULSE with the ability to systematically strip away liquidity at the “top of the book” without getting caught in linkage.

HIDDEN - conceals orders from the marketplace while working them on a single exchange or across all exchanges. When liquidity becomes available, at the user’s desired price, HIDDEN will “snap up” the liquidity and remain concealed until the order is filled.

RESERVE - breaks large orders into user-defined portions and works them on a single exchange or across all exchanges. Orders are deployed and replenished according to user-specified parameters.

DELTA PEG - as the underlying stock or index price changes, it dynamically updates working option limit prices based upon a user-specified delta parameter. It then utilizes the HIDDEN algorithm to target liquidity across single or multiple exchanges.

ISO SWEEP / ISO CROSS - offers a connection-based strategy that will automatically sweep protected bids or offers and simultaneously launch an ISO cross on the ISE. The ISO cross is valid because the algorithm is already sweeping the other exchanges in the market and removing “protected” bids/offers.

VOLATILITY - provides the ability to work single-leg option orders across a selected set of exchanges, based upon a user-specified implied volatility (as calculated by LiquidPoint), instead of a limit price.  The implied volatility level selected will be used to calculate and dynamically update the appropriate working limit price(s) for the option order(s) as changes occur in the underlying stock bid or ask.

AUTOHEDGE - as options executions occur, orders to execute a simultaneous or near-simultaneous offsetting hedge (the "delta hedge") in the underlying instrument will be automatically created at a price, and in an amount determined by the LiquidPoint pricing model.  Hedge orders will be worked using an execution algorithm developed by ConvergEx that will allow specific risk tolerance to be configured by the user.

For more information about our LiquidPoint options technology, please contact us at 312-986-2006.