OneMarketData has extended the reach of its flagship complex event processing (CEP) product OneTick through a contract win with market-maker Optiver and an integration arrangement with execution and order management systems supplier FlexTrade Systems.
Optiver selected OneTick to support its activities in the Asia Pacific region and is implementing the OneTick engine and its historical and real-time tick data at its Sydney office. The Sydney office acts as headquarters for Asia Pacific and houses not only the market makers’ technology for the region, but also its developers, quants and proprietary traders. The company previously built most of is technology in house, but decided last summer to go to market for a CEP engine that would meet its functionality and performance criteria. It evaluated a number of vendor solutions and ran proofs of concept before selecting OneTick in January 2013.
Optiver will use OneTick’s analytics tools for quantitative research and strategy development, leaning on the software’s trading signals to support systematic trading and high-frequency market making. Aaron Beverley, project manager at Optiver, explains: “Given the growing importance of data analysis to our operations, Optiver conducted a thorough search for the solution that could best support its business. OneTick’s comprehensive functionality, high performance and intuitive design, combined with its ability to draw on real-time and historical data, will help us identify and act on unique trading opportunities throughout Asia.”
OneTick has been integrated with Optiver’s proprietary internal systems and is in limited production with more extensive use planned in coming months. For OneMarketData, the win at Optiver is a good gain in a regional market where it has a handful of customers and an optimistic view of growth. Today, the company has one employee in Hong Kong and one in Tokyo, and it is planning to deploy a third representative in Sydney, Singapore or Shanghai later this year. It is also hopeful that its work with Optiver in Asia Pacific could lead to contracts covering the market maker’s US and European business.
FlexTrade’s arrangement with OneMarketData to offer integration of OneTick with the FlexTrader execution management system (EMS) was initially made last year and, following the development of integration between the products’ application programming interfaces, the company says it has attracted users that licence both OneTick and FlexTrader software from quantitative hedge funds and sell-side firms working in equity, foreign exchange and derivatives markets.
While FlexTrade includes its own CEP engine as part of FlexTrader, it offers integration to both OneTick and Kx Systems’ kdb+tick engine to meet client preferences. Vijay Kedia, president and CEO of FlexTrade, says: “We are known for our open architecture and flexibility so we are always open to integrating best-of-breed solutions and more are in the pipeline.” On the company’s OneTick integration offer, he adds: “OneTick empowers FlexTrade’s users with powerful, proven analytics to efficiently and effectively create, test and implement quantitative strategies from one central platform.”
Richard Chmiel, senior vice president at OneMarketData, says TradingScreen has also offered OneTick integration for its execution management platform for the past couple of years, while another EMS vendor is expected to introduce OneTick integration in a month or so and a fourth vendor is evaluating the integration possibility. He explains: “The trend is towards making EMS platforms more nimble and responsive to customer needs for systematic trading. OneTick does not necessarily make trading faster, but it does make it smarter.”
Looking forward, Chmiel says OneMarketData is working to extend the real-time analytics and signal generation of OneTick, and is also developing a data addition for the CEP engine that he declines to detail.