ArbMaker is a product of Sparrow Holdings, a limited liability company established in 2004 to research and identify arbitrage opportunities in global equity markets. The senior partners are graduates and post-graduates of the London School of Economics & Political Science and the University of South Carolina with degrees in economics and politics.
Active participation in the equity markets led the partners to develop ArbMaker as a tool to help identify relative value (generally known as “pairs trading”) opportunities. The software searches for the statistical property of cointegration in instrument pairs and tests them for tradability.
ArbMaker is not a black-box. But it is a highly effective and configurable tool that is adaptable to the different styles of serious pairs traders.