Trade Strategy Implementation

Question 1

Equities: Large & Urgent

Answer 1

High Touch

Why?: Need immediate execution + human judgment to source liquidity fast

Question 2

Equities: Large & Non-Urgent

Answer 2

Algorithmic

Why? Can spread orders over time to reduce market impact.

Question 3

Fixed-income: Large & Urgent

Answer 3

Principle
Why? Dealers use their own capital to fill the trade quickly.

Question 4

Fixed-income: Large & Non-urgent

Answer 4

Agency
Why? Broker searches for counterparties over time to get best price.

Question 5

Exchange Traded Derivatives: Large & Urgent

Answer 5

Luqidity seeking Algo
Why? Finds and hits liquidity across markets quickly.

Question 6

Exchange Traded Derivatives: Large & Non-Urgent

Answer 6

Algorithmic
Why? Futures/options often have good electronic execution for patient orders.

Question 7

OTC Derivatives: Large & Urgent

Answer 7

Principle
Why? The Dealer takes the other side to execute immediately.

Question 8

OTC Derivatives: Large & Non-Urgent

Answer 8

Agency
Why? Broker arranges the trade with counterparties over time.