Top stories

Neptune continues expansion with integration into Fidessa's buy-side OMS platform

May 26, 2016

Neptune, the open standards network utility for pre-trade indications in bond markets, today announced that it has completed connectivity to Fidessa's buy-side OMS platform to distribute high quality pre-trade data to assist the buy-side with liquidity and price discovery utilising their existing workflows.

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Convergex launches its “Blueprint For Growth”

May 25, 2016

Convergex, an agency-focused global brokerage and trading related services provider, is pleased to announce the official launch of its “Blueprint for Growth.” This thought leadership initiative reinforces the firm’s innovation and how it consistently strives to align its goals with those of its clients. The document highlights Convergex’s strong foundation and its three main client focused goals including finding liquidity, providing best execution and delivering a great customer experience.

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Object Trading Platform goes live at TMX Group’s Co-Location Centre for Montréal Exchange Access

May 25, 2016

Object Trading, a provider of a multi-asset trading infrastructure, expands its Direct Market Access (DMA) Service Platform by announcing today that fully managed services are now available at TMX Group’s co-location centre for access to the Montréal Exchange (MX). This expansion provides flexibility for the buy-side and sell-side, in response to the sell-side experiencing mass retrenchment while exchange volumes increase.

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Latest Blog Posts

Pair Trading: It’s Complicated – Part III: This is not your standard algorithm

Mike Baradas, Bloomberg Tradebook

May 24, 2016
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Implementing multi-asset and cross-asset algorithms presents substantial workflow challenges for many institutions.  Bloomberg Tradebook’s PAIR Multi-Asset platform provides a comprehensive solution to electronically integrate with OMS’s and EMS’s in the marketplace. In our previous posts, Part 1 and Part 2, we illustrated the mechanics of cross-asset and pair algorithms.  While a broad range of institutional investors are trading multiple asset classes in cross-asset strategies, a good number of them are challenged with certifying the algorithms into their standard OMS and EMS workflows. Source: Bloomberg Tradebook Cross-asset algorithms require order parameters that can be different from standard single-stock or list algorithms (Figure 1).  With PAIR’s streamlined user interface, traders will enter single order details (i.e. side, ticker, shares), and parameters for the defined relationship between the securities (i.e. spread limit, order slices, initiate leg). Controls and constraints are then applied to the individual legs and spread strategy, such as aggression levels and volume participation (Figure 2).  In addition, the specialized data required to nourish a pair algorithm ticket can be more intensive than a single stock algorithm.  This explains why cross-asset or pair algorithms have been slow to implement into customers’ OMS and EMS platforms. Source: Bloomberg Tradebook Given the complexity of these cross-asset strategies, the trader can save all the parameters in strategy templates (Figure 3).  At any time, the trader can then activate these strategies on the feature-rich PAIR Multi-Asset blotter. Source: Bloomberg Tradebook PAIR Multi-Asset is fully integrated with all of Tradebook’s Equities, Options and Futures platforms (Figure 4).  A Tradebook user is able to manage all of their cross-asset strategies on the Bloomberg Professional Terminal. Source: Bloomberg Tradebook However, most institutional clients use an Order Management System (OMS) and/or an Execution Management System (EMS) in their daily workflow.  In addition to executing orders, OMS and EMS platforms are central to managing institutional trading desk processes, such as risk management, compliance, and allocations.  Given these objectives, the PAIR Multi-Asset platform provides sophisticated integration solutions with a client’s OMS and EMS. Source: Bloomberg Tradebook Several solutions are available to integrate PAIR Multi-Asset with a client’s EMS (Figure 5). Drop-copies from PAIR Multi-Asset will send executions back in real-time over FIX to a client’s EMS. A risk-ticketing feature can also be enabled for PAIR Multi-Asset to first check for parent orders in the EMS, before activating a strategy. Full FIX-staging is available from an EMS to PAIR. As we described earlier, certifying all PAIR features may be burdensome for an EMS.  A Generic ticket solution is provided for FIX-staging the minimum required order parameters to PAIR.  The trader can then set the additional parameters in PAIR before activating the strategy. A PAIR Multi-Asset FIX schema is also available to fully certify the PAIR algorithms in an EMS. Source: Bloomberg Tradebook The same integration solutions are also available for a client’s OMS (Figure 6). Source: Bloomberg Tradebook Finally, for clients using an OMS and EMS in their workflow, complete integration is available with the PAIR Multi-Asset platform.  
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Bumpy road ahead?

Steve Grob, Fidessa

May 20, 2016
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Interesting story in the FT today about IEX and its application to become a fully-fledged exchange. At issue is IEX’s so-called ’speed bump’ that will slow down the HFT ‘boy racers’ and so make markets safer again. Naysayers claim that the inclusion of a speed bump is contrary to the rule that investors should have “immediate” access to the best liquidity. The SEC counters that anything that is sub-millisecond (such as in this case) is, in effect, “immediate”. It seems, however, that such a distinction would not stand up in the black and white interpretation of the law that a judge would be forced to apply. The real point, though, is that if IEX were to have its licence approved, then all that would happen is that everyone else would introduce their own speed bumps, speed traps, traffic lights and other mechanisms to better serve one set of traders over another. On top of this, the market would introduce a plethora of ever more complicated order types to allow different, yet all legitimate, participants to navigate their way around or through the available liquidity in the way that they wish. And so we would be spectacularly back to square one (only in an even more complicated way). It seems to me that it’s a little disingenuous for traditional investment managers to claim that markets should exist only to serve their business models. HFT is just different, that’s all, and if we don’t want it around then the only way to achieve this is to mandate that all liquidity venues install exactly the same type of speed bump.
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Apple shows the way for trading systems

Steve Grob, Fidessa

May 12, 2016
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Interesting to read that Apple is reportedly deciding when, not if, to cancel music downloads from iTunes.  The idea, of course, is to move everyone over to its Apple Music streaming service.  This got me thinking about the whole “access to” versus “ownership of” debate and how it applies to our industry.  As a committed audiophile, the Apple story filled me with horror as I thought about how I have curated my music collection over the years and, more importantly, the sound quality of streaming services compared to playing them through my dual DAC player.  And, even worse, what if it breaks or I can’t access it? As the effects of my early morning extra-strong flat white began to wear off, however, I became more sanguine. SoundCloud provides me with the ability to curate (and share) my music – even including my own artwork – and, streaming quality is ultimately just a question of bandwidth and market demand (ditto with resilience). So, if this is what’s happening to music, cars and pretty much everything else we consume, why do some firms still insist on building and maintaining their own in-house trading systems? There may still be good reasons, but as the industry (and its profit margins) become increasingly commoditised, these will become harder and harder to justify.  Meanwhile technology continues to march onwards, making “access to” the preferred way  to consume just about everything…
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Interview

Ross Dubin talks to ATMonitor about OneTick's Solutions

May 12, 2016
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ATMonitor talks to Ross Dubin, Global Head of Sales at OneMarketData. Dubin discusses the OneTick platform and solutions offered around trade surveillance, regulation and compliance, as well as what factors are diving the markets today.

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EZE Software's Adam De Rose talks about front-office reactions to regulatory challenges

Apr 19, 2016
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Talking from TradeTech Europe 2016, Adam De Rose, Associate Director Institutional Sales discusses how Eze Software Group is aiding the front-office in meeting regulatory challenges, particularly around MiFID II.

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Robert Powell talks to ATMonitor about upcoming trends in communications and technology

Apr 18, 2016
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Talking from TradeTech Europe 2016, Robert Powell, Director of Compliance at IPC tells us how the marketplace is evolving, particularly around compliance and the upcoming market abuse regulation (MAR). Powell discusses advances in biometrics, including using voice print and facial recognition to access telephony and data systems.

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Survey

Algorithmic Trading Survey 2016 - Hedge Funds

Trading Survey The TRADE magazine in conjunction with ATMonitor, is once again running its industry leading survey of Algorithmic Trading Services. Now in its 9th year running, we invite Hedge Funds to comment on their use of electronic trading services and to rate their algo providers. Please rate your algos by completing the online questionnaire available here

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Research

Counter (party) intuitive

Fidessa

Apr 05, 2016
Counter (party) intuitive

Pressures from all sides are driving buy-side firms around the world to pay ever-closer attention to counterparty exposure. Asset managers are looking critically at their existing processes for monitoring and controlling counterparty risk and often finding them to be inadequate. Here Steven Strange, Compliance Product Manager at Fidessa, looks at how the counterparty landscape has changed for the buy-side, and what can be done to ease the burden.

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Video showcase

Corvil working with RSJ

Corvil Watch Michal Sanak, CIO, RSJ Algorithmic Trading discuss working with Corvil. read more

Corvil working with Tradition

Corvil Watch Yann L'Huillier, CIO, Tradition and Alex Krovina, CTO, Tradition discuss working with Corvil. read more

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