Large Order execution, best method?

CFA Level III Portfolio Management
#1

Hello forum,

If you need to execute a large order on a liquid instrument what would be your best option? Liquidity seeking algo? Arrival price algo?
If iliquid i think should be done via dark pool, and if very iliquid via rfq?

Thanks in advance

#2

It depends on trade urgency, using dark pools when trade urgency is high due to alpha decay for example is not a good strategy

#3

Thanks Julio, so if you have great urgency, liquidity seeking algo is the best option in that case?

#4

Yes it could be a good strategy IMO althoug it may use dark pools, it will use them only in times of great liquidity, the asset class is also important because for some asset classes Fixed Income for example the use of algorithms for Large orders May be not a good strategy And is better to use high touch which involves human intervention