An alpha capture system is a

computer system A computer is a machine that can be programmed to carry out sequences of arithmetic or logical operations ( computation) automatically. Modern digital electronic computers can perform generic sets of operations known as programs. These prog ...

that enables

investment bank Investment is the dedication of money to purchase of an asset to attain an increase in value over a period of time. Investment requires a sacrifice of some present asset, such as time, money, or effort. In finance, the purpose of investing is ...

s and other organizations to submit "trading ideas" or "

trade idea Trade ideas (or trading ideas, or "Electronic Alpha-Capture") are investment ideas, typically equity related, ("long" i.e. buy, or "short" i.e. sell) which are sent by institutional stockbrokers to their institutional clients (i.e. this is not a s ...

s"
TIM Ideas to clients in a written electronic format, for example TIM Group's TIM Ideas product or Bloomberg LP's Trade Ideas product.

Introduction

Financial Services Authority Markets Division: Newsletter on Market Conduct and Transaction Reporting Issues, Issue No. 17, September 2006,Market Watch
retrieved 8 January 2009 First used in 2001 by

Marshall Wace Marshall Wace LLP is a hedge fund based in London, founded by Paul Marshall and Ian Wace in 1997. Marshall serves as chairman and chief investment officer, and Wace as a chief executive officer & chief risk officer. The company is recognized as ...

Wall Street Redefined
by Bill Alpert, First Coverage, retrieved 8 January 2009 they are an alternative to the traditional

stockbroker A stockbroker is a regulated broker, broker-dealer, or registered investment adviser (in the United States) who may provide financial advisory and investment management services and execute transactions such as the purchase or sale of stocks ...

ing approach of communicating ideas and strategies to clients face-to-face or over the telephone. The term ''alpha capture'' refers to the aim of such systems to help investors find alpha or market-beating returns on investments. Submitted trade ideas are accompanied by a rationale, timeframe and conviction level and enable investors to quantify and monitor the performance of different ideas.

References

External links

Coininsider News & Guides
Financial software {{trade-stub