Key technology considerations for algorithmic trading capability (Technology Focus)

Datamonitor
December 6, 2006
10 Pages - SKU: DFMN1422759
License type:
Introduction

As financial institutions battle with ongoing competitive pressures, there have been radical transformations in trading systems in global markets. Institutions are looking for advanced trading platform functionality in order to gain the ever important competitive advantage.

Scope

*Discusses current technology trends in the algorithmic trading space
*Examines the technological requirements for financial institutions demanding algorithmic solutions

Highlights

Whilst most firms have gained their exposure to this type of trading through sell side counterparts, there are increasingly other viable options on offer such as internal system development or vendor tool kits.

A number of trading firms have taken the additional step of writing their own feed handlers to read and extract the relevant information from the streaming data flow. When evaluating alternatives, issues such as latency, stability and market coverage are among some of the key considerations.

The ability for automated systems to detect patterns and produce signals feeding into OMSs will be a key feature of technology solutions in the future. The chance to reverse the standard data flow to send messages back to the trader will be an important trend in the future for portfolio construction.

Reasons to Purchase

*Understand the technology issues behind algorithmic trading environments
*Learn about next generation algorithm technology targeted at achieving competitive advantage