Established in January, the Vandham Securities electronic trading effort was started by Seth Weber, a 20-year veteran at both Lehman Brothers and its successor, Barclays.
ran electronic broker-dealer services-the selling of algorithms and routing products to B-Ds that used them to execute their own trades.
Vandham of Woodcliff Lake, N.J. is looking to expand beyond Weber's broker-dealer client list and is seeking to do business with institutional money managers.
And why would institutional clients want to trade with Vandham?
Unlike larger firms that offer myriad other services, such as research or investment banking to clients, Weber, a managing director and head of the electronic trading business, said his firm can provide more tailored service, independence, anonymity and a closer relationship.
"My plan is to leverage relationships that I have developed over the last 20-plus years in the business," Weber
Vandham's electronic desk consists of Weber
and three other sales traders who monitor algo performance and watch to make sure a client's order is being properly routed and executed.
The firm's algorithms range from basic VWAP and TWAP to more complex ones that minimize information leakage by selectively choosing trading venues.
The smart order router taps both lit and dark venues.
"There is good liquidity in both lit and dark venues, and accessing them without information leakage is most important for our clients," Weber
With several brokers now trading with the desk, Weber
said the push now is to approach buyside customers as well.
added that he
is currently courting money managers and that buysiders "have been warm" to an independent firm such as Vandham in the electronic space as an alternative to large firms.