An alpha capture system is a computer system that enables investment banks and other organizations to submit "trading ideas" or "trade ideas"[1] to clients in a written electronic format, for example TIM Group's TIM Ideas product or Bloomberg LP's Trade Ideas product.[2]
Financial Services Authority Markets Division: Newsletter on Market Conduct and Transaction Reporting Issues, Issue No. 17, September 2006,[3]
First used in 2001 by Marshall Wace[4] they are an alternative to the traditional stockbrokering approach of communicating ideas and strategies to clients face-to-face or over the telephone.[3]
The term alpha capture refers to the aim of such systems to help investors find alpha or market-beating returns on investments.[5]
Submitted trade ideas are accompanied by a rationale, timeframe and conviction level and enable investors to quantify and monitor the performance of different ideas.[4]
 | This trade-related article is a stub. You can help Wikipedia by expanding it. |
