Available to institutional trading clients, Aqua is an algorithmic trading strategy that intelligently seeks liquidity while managing market impact.
Using Aqua, you’ll benefit from J.P. Morgan’s state-of-the-art analytical models seeking to optimize execution performance.
Aqua’s five, user-specified urgency levels range from passive dark participation to aggressive liquidity taking. Urgency levels are customizable and may be configured towards your individual trading objectives.
|Urgency||Objective||Trading Behavior||Order Example|
|Dark||Seek undisplayed liquidity at the mid-point price or better.||Post orders across multiple undisplayed venues. Use real-time fill rate information to allocate shares to venues with the highest fill probability.||“Sell 25,000 CVS working passively in dark pools.”|
|Low||Seek undisplayed liquidity and trade opportunistically in the lit markets.||Work the order passively across lit and undisplayed venues. Capture liquidity in the event of favorable price and size opportunities.||“Buy 30,000 COP. Work the order in dark venues, taking size from lit markets when available.”|
|Medium||Participate while searching for undisplayed and outsized liquidity.||Participate at a moderate percentage of the market volume. Post orders across lit and undisplayed venues. Take liquidity in the event of favorable price and size opportunities.||“Buy 35,000 KO. Trade in-line but post dark and grab outsized liquidity when available.”|
|High||Decisively take liquidity but pace execution to limit impact and allow the order book to replenish.||Trade aggressively while allowing for liquidity in the order book to replenish. Simultaneously post passively in lit and undisplayed venues.||“Sell 20,000 CSX. Capture stock frequently to complete the order.”|
|Get Done||Aggressively take liquidity up to the limit price.||Send an oversized order to sweep up to the limit price. Post in lit and undisplayed venues when the order is not marketable.||"Buy 15,000 JNJ, taking stock up to the limit."|
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