TradeTrek Securities Launches Algorithm Trading Solutions; Broker-Dealer Offers Conflict-Free Algorithm-Based Trading.

NEWARK, N.J. -- TradeTrek Securities, an institutional broker dealer, announced today that it has launched Algorithm Trading Solutions, an algorithm-based equity trading division, which will be the primary focus of the firm.

Algorithm Trading Solutions provides institutional investors with algorithm-based electronic order placement and execution. The firm's proprietary technology is based on many of the same principles that drive today's military weapon systems. Indeed, several of the firm's principals not only served in the U.S. military but also designed such systems at major defense contractors before joining the financial industry. The speed and stealth with which this technology can execute trades minimizes the so-called "implementation shortfall," or the transaction costs of trading stock.

Frederick Graboyes, a former company commander with the elite 82nd Airborne Division and a director of research for GEC Marconi Avionics, is founder and president of Algorithm Trading Solutions. He has been at the forefront of investment technology for over a decade. Mr. Graboyes led Bank of New York's program trading group for several years and was a portfolio manager and head trader for an asset management division of Prudential Financial, where he developed computer driven portfolio management algorithms and trading systems.

Beyond traditional trading commissions, transaction costs rise when a stock price moves against a trade, which often happens when an institutional order is introduced to the market. Algorithm Trading Solutions' software driven execution often reduces these costs by presenting orders far more efficiently than legacy trading desks, which overwhelmingly rely on traders to execute orders.

As a pure electronic agent, Algorithm Trading Solutions can assure clients of optimal execution without the potential conflicts-of-interest that are common to the institutional brokerage industry. These conflicts often result in higher trading costs and delayed trade execution.

For instance, many brokers are set-up to maximize the order flow that crosses their proprietary trading desks or block trading desks. Therefore, client orders are often filtered through these desks before they are executed, unnecessarily delaying trade execution.

"Our sole purpose is executing our client's orders in as timely and efficient a manner as possible -- not feeding order flow to an in-house desk," said Mr. Graboyes. "We seek to eliminate where possible any of the discretion or liberties that a trader could take with a client's order."

Algorithm Trading Solutions is willing to stand behind its technology on every trade. The firm provides its clients with pre-trade analytics and risk assessment. These tools give clients an assessment of the potential risks and costs of executing a particular trade. The firm also gives its clients a post-trade analysis that benchmarks the firm's trading system's final performance against the pre-trade assessment and client provided benchmarks.