Alpha capture system
Encyclopedia
An alpha capture system is a computer system that enables investment banks and other organisations to submit "trading ideas" or "trade idea
s" to clients in a written electronic format, for example TIM Group's TIM Ideas product. Financial Services Authority Markets Division: Newsletter on Market Conduct and Transaction Reporting Issues, Issue No. 17, September 2006, First used in 2001 by Marshall Wace
they are an alternative to the traditional stockbrokering approach of communicating ideas and strategies to clients face-to-face or over the telephone.
The term alpha capture refers to the aim of such systems to help investors find alpha or market-beating returns on investments. Submitted trade ideas are accompanied by a rationale, timeframe and conviction level and enable investors to quantify and monitor the performance of different ideas.
Trade idea
Trade ideas are investment ideas which are sent by institutional stockbrokers to their clients. They typically propose a trade in a specific stock and are developed by the individual idea author’s Trade ideas (or trading ideas) are investment ideas ("long" i.e. buy, or "short" i.e. sell) which...
s" to clients in a written electronic format, for example TIM Group's TIM Ideas product. Financial Services Authority Markets Division: Newsletter on Market Conduct and Transaction Reporting Issues, Issue No. 17, September 2006, First used in 2001 by Marshall Wace
Marshall wace
Marshall Wace LLP is a hedge fund in the City of London that was founded by Paul Marshall and Ian Wace. Marshall is chairman and chief investment officer and Wace is chief executive officer....
they are an alternative to the traditional stockbrokering approach of communicating ideas and strategies to clients face-to-face or over the telephone.
The term alpha capture refers to the aim of such systems to help investors find alpha or market-beating returns on investments. Submitted trade ideas are accompanied by a rationale, timeframe and conviction level and enable investors to quantify and monitor the performance of different ideas.