3D Markets Archangel

From MarketsWiki

(Redirected from Archangel)

This page is not complete!

Do you have knowledge to contribute on this or other subjects?

Help the wiki grow -- add what you know.

Archangel is a product created by 3D Markets to anonymously match buyers and sellers over its proprietary electronic network.^[1]

The way the product works is that buy-side institutions submit an order into the system, which is decomposed into its risk profile. Participants gain an understanding of the value and risk of the instrument, without knowing what the exact security is when the transaction takes place.

Archangel routes to an exchange with both sides of an order. BOX, the Chicago Board Options Exchange (CBOE) and the International Securities Exchange (ISE) currently offer electronic crossing facilities, each with a slightly different set of rules.

Its customers include multi-billion dollar asset managers, such as Fidelity, with large put orders on one side; and traditional liquidity providers and market makers, proprietary trading shops and hedge funds on the other.^[2]

News

On May 20, 3D Markets and the Chicago Board Options Exchange (CBOE) announced they had signed an exclusive agreement that, when approved by the Securities and Exchange Commission, would allow CBOE to match large institutional buy and sell options orders electronically during a special matching session. The agreement will allow CBOE to introduce institutionally oriented "benchmark-priced trades" through 3D's Archangel trading software. The execution price would be determined at the end of the trading day, using a methodology known as “GWAP” pricing (Gamma Weighted Average Price), similar to Value Weighted Average Price (VWAP) used heavily in the securities market.

The GWAP (Gamma Weighted Average Price) auction and pricing methodologies would be proprietary to CBOE.^[3]

This page needs a sponsor.

Put your logo here!

Email us for information
on how to support MarketsWiki.