Fidessa Increases Messaging Infrastructure Resilience
As we increase the scope of products and currencies we trade on our platform, we constantly look to collaborate and innovate with our clients. We work very closely with our network of buy- and sell-side institutions on how they can improve their execution. That is evidenced by the launch of the many new trading protocols and workflow solutions in the last few months. IS Prime offers full service brokerage and execution via its cutting edge proprietary technology. As a Prime of Prime, IS Prime provides aggregated pricing sourced from Tier one institutions, settled through the group’s bank Prime brokers. ISAM Capital Markets also includes IS Prime Hong Kong and risk management specialist, IS Risk Analytics.
In addition, the issue of market centre connectivity is a key factor in assessing multi-asset systems. Firms pursuing cross asset trading strategies require access to the broadest range of execution destinations. Regardless of any technology or architectural shortcomings, multi-asset broker platforms are, by definition, single broker systems, and as such they cannot offer clients access to every available source of liquidity. Broker-neutral systems, on the other hand, can reach every broker and liquidity point from a single, consolidated trading environment. Other challenges exist for funds wishing to implement cross asset trading systems, not the least of which is integration with existing trade workflow applications. Many funds rely on a host of different back office and risk applications , that are segregated by asset class.
However, back- tested data may reflect the application of the index methodology with the benefit of hindsight, and the historic calculations of an index may change from month to month based on revisions to the underlying economic data used in the calculation of the index. Fidessa, the provider of multi-asset trading and infrastructure, has announced the full integration of the Solace messaging platform into its own GS3 middleware. From selecting FX algorithms, to evaluating liquidity providers, to identifying hidden costs, there is an emphasis on what the data is telling people, said multiple speakers at the virtual event. In addition, recent changes to the FX Global Code of Conduct, could provide additional market transparency for the buy side related to algorithmic trading and TCA. Large asset managers that are fully integrated into Tradeweb are using the same infrastructure to trade swaps in the market, working with us to further enhance their access to liquidity from these emerging markets currencies. Additionally, our Automated Intelligent Execution functionality helps the buy-side to automate trades via rules and data that they set up across multiple different types of transactions on the platform.
Fidessa Increases Messaging Infrastructure Resilience
For cash bonds, AiEX represents a significant proportion of our overall flow, partly because of the sheer volume of transactions we see in the space. As desks look to gain workflow efficiencies, the opportunities to automate derivatives are also gaining much more attention. Clients are increasingly looking at the tool as an option to increase speed-to-market, and reduce both costs and operational risk. In credit we recently expanded our portfolio trading capability to European bonds, and in swaps we now facilitate multi-asset package trading for sterling interest rate derivatives and bonds. Both solutions are key to supporting the execution of more complicated transactions with the benefit of netting different instruments together. The partnership with Reactive Markets combines features of IS Prime’s back office portal, Terminus, and gives clients a more streamlined trading experience.
Once that liquidity is up and running, these protocols can be scaled to the rest of the buy- and sell-side, so they can also take advantage of the benefits they offer. Diversification benefits are also evident if we look at adding fixed income listed infrastructure within the context of a broader portfolio. With built-in algorithmic trading engine, TX-AUTON allows traders to develop, simulate, deploy and automate any quantitative trading strategy for any market. TX-AUTON also offers advanced charting tools with 20+ technical indicators which help traders to gain insights into historic price data for analysis. Various types of chart styles with TA tools include Bollinger Bands, Moving Average, Fast/Slow Stochastic, Price Oscillator and MACD.
Fixed Income Trading Desk Of The Future
The key upside for customers is that they will be able to implement integration of Fidessa and Solace more quickly than before. IS Prime HK may provide general commentary which is not intended as investment advice and must not be construed as such. IS Prime HK assumes no liability for errors, inaccuracies or omissions; does not warrant the accuracy and completeness of information, text, graphics, links or other items contained within these materials. Providing traders the freedom to trade anywhere at any time, TX-AUTON is mobile-app ready and compatible with most recent mobile devices for traders’ easy access to market updates in real-time mode.
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Even those funds that use multi-asset order management systems have to ensure that communication between their OMSs and execution platforms is robust and supports seamless information transfer for all asset classes. As such, multi-asset EMS should have pre-certified connections to all leading workflow applications, yet be flexible enough to integrate with any proprietary system a client may have developed in-house. It is these types of cross-asset trading strategies that are driving the adoption of multi-asset EMSs.
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It’s going to continually rise, although the actual growth rate is hard to predict. Automation in FX and equities is very advanced, and is now picking up pace in rates and credit. On the rates side, we’ve long seen automated pricing from market makers and are now witnessing increasingly more auto-responding and auto-hedging. The products and services of New York Life Investments’ boutiques are not available in all jurisdictions or regions where such provision would be contrary to local laws or regulations.
Transaction cost analysis is key to understanding any impact on trading, and our TCA tool helps our customers better understand where they can improve their performance and configure their AiEX parameters accordingly. In addition, our integration with leading margin optimisation providers, Cassini Systems and OpenGamma, offers clients access to life-cycle cost analytics, supporting multi-asset trading. FlexTrade Systems, a global leader in multi-asset execution and order management systems, announces direct availability of Liquidnet’s Targeted Invitations in its multi-asset trading blotter for equities. The functionality provides traders with targeted natural liquidity from other Liquidnet buy-side members and selected brokers, directly into the parent order blotter.
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Traders can enjoy the convenience of placing orders and monitoring positions anytime and anywhere on the go. Dark pools catering to institutions have evolved with innovative methods of matching orders Multi Asset Trading Infrastructure and faster matching engines to avoid moving the price after the trade. It’s also a sign of the intense competition brewing between off-exchange venues seeking to sign up brokers and institutions.
That might mean automating the hedge or the foreign exchange leg of a trade, or it can represent a low-touch approach to handling smaller trades across assets. Tradeweb introduced AiEX in 2012, but as more clients use it, they come to us with feedback around automating different pieces of their workflow. Getting the technology in place to enable automation takes very little time and effort thanks to our connectivity to the different buy-side systems, which has reduced barriers to entry significantly. With so many firms already integrated with us via FIX, it’s really easy to roll out any new functionality that we develop.
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Despite the pandemic, our research shows that the number of global infrastructure projects continued to grow in 2020. Looking ahead, the reopening story for global markets and a return to mobility collectively point to a continued focus on infrastructure spending. And as of the time of this writing, President Biden has just unveiled a robust $2 trillion infrastructure plan, setting infrastructure spending as a key priority in his administration’s agenda. “Combined with other initiatives, this enables firms to deploy new systems without the usual headaches in terms of integration, change control and IP delivery,” he said.
- However, we’ve established that combining equity and fixed income listed infrastructure into a single portfolio can have several potential benefits.
- In addition, our integration with leading margin optimisation providers, Cassini Systems and OpenGamma, offers clients access to life-cycle cost analytics, supporting multi-asset trading.
- By offering lightning fast access to real-time data and up-to-the minute view of the markets, TX-AUTON helps investors and traders to efficiently identify trends and determine buy/sell decision intelligently.
- We launch protocols like this with first-mover clients, who drive execution electronically for workflow efficiencies and the price transparency that they provide them.
- We work very closely with our network of buy- and sell-side institutions on how they can improve their execution.
Clients can view and manage their risk in a single place, whether using IS Prime’s desktop or mobile app. Despite past attempts to usher in 24-hour trading in U.S. equities, a major catalyst behind the current momentum has been the round-the-clock trading occurring in cryptocurrencies which has raised expectations for retail investors. The rise of new electronic trading venues could test these assumptions, though issues such as liquidity and settlement time frames may need to be addressed first. It all comes back to improving the search for liquidity, streamlining the execution process, and supporting the evidencing of execution quality to boost multi-asset capabilities and enhance traders’ workflow.
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As shown, the various equity-debt combinations demonstrate an improvement in risk-adjusted returns in the multi-asset portfolio compared to single asset fixed income and equity indexes. Listed infrastructure equities have historically been shown to offer diversification benefits when added to a broader equity portfolio—and our recent research shows that adding infrastructure bonds can further enhance diversification. “As the trend towards multi-asset trading is accelerating,” Alex Wong, Assistant Director of GES said, “GES strives to provide a complete solution for multi-asset trading that caters for the needs of today’s brokers and traders. GES’s end-to-end solutions provide brokers with every aspect of setting up a multi-asset brokerage business.
The execution of high-touch or larger size transactions in different assets depends on how the client wants to interact with the marketplace. The larger the trade, irrespective of asset class, the more likely it would be negotiated directly with a sales person. Large block risk transfers are the highest of high-touch, and we facilitate those transactions via both the trading protocols and the price range that we offer on the platform.
If you have any problems with your access or would like to request an individual access account please contact our customer service team. Ultimately, automation increases the amount of trades that can be done with minimal intervention, clearly saving on a trader’s time. No part of this information may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission of the applicable member of the LSE Group. Use and distribution of the LSE Group data requires a licence from FTSE, Russell, FTSE Canada, MTSNext, Mergent, FTSE FI, YB and/or their respective licensors.
As such, funds must be extremely wary of adopting rigid systems that cannot grow alongside their emerging business requirements. In the end, the extent to which firms’ underlying trade architecture allows them to tailor solutions that meet their specific needs – multi-asset or otherwise – will determine how well they adapt to an increasingly dynamic global marketplace. The problem with this kind of solution is that it does not address one of the core reasons for the growth of multi-asset trading in today’s market. The vast majority of traders do not trade multiple, unrelated assets independently for alpha – separate assets, separate strategies. For most funds, the true benefit of having a multi-asset trading system is that it supports the creation of advanced cross-asset trading strategies that are based on the simultaneous, integrated execution of multiple assets as part of a single strategy. Today, a number of leading brokers offer multi-asset solutions in one form or another.
Listed infrastructure equities also have the potential to serve as an inflation hedge, as infrastructure companies’ revenue streams are often directly linked to inflation. This is notably topical in the current environment, as the massive monetary easing that followed the COVID-19 crisis has put inflation back on investors’ agendas. When you link to any of the web sites provided herewith, you are leaving this site.
We’re unique among electronic venues in that we offer marketplaces for rates, credit, equities and money markets. As a result, we work with different types of firms; asset managers, central banks, systematic hedge funds and macro hedge funds. Educating clients on the nuances of what we offer in a solution like AiEX, for example, is phase one of how we work with them.
In this episode of Market Matters, Lauren and Robert make the case for a multi-asset approach to generating income, and offer several allocation ideas. Equinix connects the world’s leading businesses to their customers, employees and partners inside the world’s most connected data centers in 33 markets across five continents. In the United States, Equinix operates data centers in Atlanta, Boston, Chicago, Dallas, Denver, Los Angeles, Miami, New York, Philadelphia, Seattle, Silicon Valley and Washington D.C. In swaps, clients are willing to execute these large risk transfers on Tradeweb because we have protocols, such as request-for-market, that help prevent information leakage by allowing them not to disclose the direction that they want to trade.
With GES’s complete solution, brokers are able to enjoy a fully operation front-end trading platform, with seamless back-end integration and excellent pricing system. Collaborative innovation has been behind the development of such diverse and flexible functionality across the platform. We launch protocols like this with first-mover clients, who drive execution electronically for workflow efficiencies and the price transparency that they provide them.
GES empowers financial institutions with algo-trading capability, advanced risk management and FIX bridging solutions. GES fully covers the needs of the on-floor trading and OTC markets, with value-added services ranging from IT technical support, system https://globalcloudteam.com/ integration, bespoke software and network infrastructure development to hosting services. Take, for example, the trader who is creating an index arbitrage strategy, which involves the execution of futures against baskets of underlying equities.
This table also illustrates how the addition of the debt component reduces the volatility and drawdowns of the portfolio, enhancing the defensive properties of a listed infrastructure allocation. Moreover, equity holders can view the addition of a fixed income component as a potential hedge against corporate distress in the event the covenants of the bonds are triggered, and the company has to restructure its capital. This can be particularly important given the high leverage of infrastructure companies. Combining listed infrastructure stocks and bonds can also offer the potential for higher risk-adjusted returns. In the table below, we’ve used different proportions of a debt and equity mix and calculated the returns and volatility of the multi-asset portfolios over the past 10 years.
These are based upon a number of assumptions concerning future conditions that ultimately may prove to be inaccurate. Such forward-looking assessments are subject to risks and uncertainties and may be affected by various factors that may cause actual results to differ materially. No member of the LSE Group nor their licensors assume any duty to and do not undertake to update forward-looking assessments. “New York Life Investments” is both a service mark, and the common trade name, of certain investment advisors affiliated with New York Life Insurance Company. Steve Grob, director of Group Strategy for Fidessa, suggested that the take-up rate of Solace technology across Fidessa’s own customer base was another reason to pursuing the integration.
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