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Barclays introduces automated capital commitment for algorithmic trading

UK-based diversified financial conglomerate Barclays has launched an automated capital commitment feature available through select equity algorithmic trading strategies for US clients.

Designed to offer electronic clients with liquidity while improving the cost of execution on algorithmic orders, the new functionality enables clients to team up with Barclays in creating liquidity and transferring risk.

Barclays equities head Joe Corcoran said offering the benefits of both high-touch and low-touch trading will help clients to protect their anonymity, provides them with liquidity and reduces their total execution costs.

"Offering capital commitment on our algorithmic strategies will help to drive workflow efficiencies for our clients and strengthen Barclays’ position as a center of liquidity," Corcoran added.

Prior to using the new feature, clients must be authorized by Barclays so that, they can choose the functionalities on a per-order basis through a simple check box on their algorithmic order screen.

Once enabled, the feature automatically transfers a part of the client’s order to Barclays’ central risk management book, offering the client with instant liquidity as well as saving them the execution cost associated with that portion.

The British bank is planning to introduce the automated capital commitment feature next in EMEA as part of the ongoing development of its global electronic trading platform.

Operating in over 50 countries and employing more than 140,000 people, Barclays provides advisory, financing and risk management services to large corporate, government and institutional clients.