Trading solutions and market data services provider QuantHouse has launched an algorithmic trading stress-testing service, in API form, geared toward handling the increase in volume of market information and activity expected once MiFID II regulation takes effect in 2018, according to Stephane Leroy, business co-founder and chief revenue officer at the company.
“The solution enables clients to build stress testing scenarios from two times their highest volume up to ten times peak volume,” says Leroy. “This ensures clients can not only match the MiFID II required thresholds, but through further customisation and using QuantHouses’s flexible API-enabled framework, customers can test and optimise their infrastructure beyond the needs of MiFID II.”
QuantHouse is hosting the new service at an Interxion data centre in London, which improves access for users, according to Leroy. “Firms benefit from being one cross-connect away from being able to meet their algo stress-testing regulatory requirements under MiFID II,” he says.
QuantFeed, the QuantHouse quantitative model testing technology, has been honed for quant traders’ use, which is the basis for the new service, he explains. “Existing capabilities such as storage and back testing in a lab environment have been enhanced with specific features that allow client to stress test processes that mirror specific market conditions,” says Leroy. “This enables customers to test their model against specific market activity peaks and ensures that firms can meet MiFID II requirements.”
MiFID II requires demonstration of capacity and capability to handle market volatility, and QuantHouse’s new API meets those specific requirements, adds Leroy.
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