CIBC World Markets has licensed Egar Technology's equity analytics solution for the financial institution's new dispersion trading portfolio.
Egar Dispersion is a volatility dispersion strategy analyser designed to highlight investment opportunities when changes occur in the relationship between options on an equity index (such as the Dow Jones Industrial Average) and options on the constituent index members.
CIBC World Markets says it will deploy the new volatility dispersion strategy analyser in its equity arbitrage group.
Sanjay Dasgupta, executive director of the Equity Arbitrage Group at CIBC World Markets, comments: “We were delighted to learn that Egar has designed a full-fledged analytical system to perform the functions we need for our new dispersion trading portfolio...We now have a more effective and cost efficient dispersion strategy.”
CIBC will use the full version of Egar Dispersion, which includes risk analysis and position monitoring. It will also use Egar's custom-built stochastic implied volatility analysis system. Additionally, the bank will be able to use an historical database and daily updates service developed by Egar and data provider IVolatility.com.