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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]

Introduction

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. [4]

Submitted trade ideas are accompanied by a rationale, timeframe and conviction level [3] and enable investors to quantify and monitor the performance of different ideas. [3] [4]

References

  1. ^ [1] Archived 2013-09-29 at the Wayback Machine TIM Ideas
  2. ^ "What is Options Trading?". Retrieved 2023-08-02.
  3. ^ a b c d Market Watch, retrieved 8 January 2009
  4. ^ a b c Wall Street Redefined by Bill Alpert, First Coverage, retrieved 8 January 2009