Alpha capture system

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An alpha capture system is a computer system that enables investment banks and other organisations 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. Financial Services Authority Markets Division: Newsletter on Market Conduct and Transaction Reporting Issues, Issue No. 17, September 2006,[2] First used in 2001 by Marshall Wace[3] they are an alternative to the traditional stockbrokering approach of communicating ideas and strategies to clients face-to-face or over the telephone.[2]

The term alpha capture refers to the aim of such systems to help investors find alpha or market-beating returns on investments.[3] Submitted trade ideas are accompanied by a rationale, timeframe and conviction level[2] and enable investors to quantify and monitor the performance of different ideas.[2][3]

References[edit]

  1. ^ [1] TIM Ideas
  2. ^ a b c d Market Watch, retrieved 8 January 2009
  3. ^ a b c Wall Street Redefined by Bill Alpert, First Coverage, retrieved 8 January 2009