Market relationships
Correlations and pricing relationships can change. Risk assessment considers what happens when an observed relationship weakens or ceases to hold.
Trading &
liquidity.
Electronic markets connect participants, instruments and venues. Weyls trades the relationships within that system and provides liquidity through systematic pricing.
Systematic tradingRelationships
Relationships
between prices.
The price of an instrument can carry information about other instruments, markets and sources of risk.
Our systematic trading activities use quantitative methods to examine those relationships and translate them into trading decisions. The question is not simply whether a pattern exists, but when it remains informative and whether it can be traded.
This includes statistical arbitrage: assessing relative pricing through models of market behaviour. Research considers the stability of a relationship, the cost of expressing a position and the conditions under which the model may no longer apply.
From observation to a position
Liquidity, transaction costs and residual exposures are part of the assessment of a trading opportunity.
Liquidity provisionA price to buy.
A price to buy.
A price to sell.
Market making brings research directly into the process of price formation.
Our liquidity strategies determine the prices at which we are prepared to buy and sell. Pricing responds to the information in the market, the liquidity available and the exposure associated with an execution.
A quote is therefore both an estimate of value and a decision about risk. Inventory, adverse selection and the cost of adjusting positions are considered together, rather than as separate questions after a trade.
Portfolio & risk
Different strategies.
A portfolio perspective.
Strategies can have distinct trading logic while sharing exposure to the same market conditions.
The ability to trade
Liquidity and transaction costs affect how a position can be entered, adjusted or closed. A model’s view of value is considered alongside these execution conditions.
Combined exposure
Positions are understood in relation to the portfolio. Different instruments and strategies can respond to common factors, concentrating exposure in ways that are not visible in isolation.