The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

What’s to Come in 2020: Advanced Trading Technology Opens Door to Highly Individualized and Agile Strategy

By Chris Hollands, Head of European and North American Sales, TradingScreen

Farewell to the 2010s, the decade of pure speed. The period when automated trading shot up the curve, ascending from a tool of the early adopters to a cross-asset industry norm. We embraced algorithms as our trump card, so much so that they now account for the lion’s share of buy-side equities orders and FX trades, and have growing importance in fixed income and other traditionally high-touch workflows.

Electronic trading will continue to shape our industry’s future, delivering the speed, scale and embedded compliance that provides a competitive edge. But from hereon in, it’s not only the automation that will shape the future. In the 2020s, the broader application of newer, more advanced technologies will underpin the endeavours of the buy-side trading desk.

Thanks to the exponential advances in machine learning and analytics visualisation, algorithmic trading technology has almost reached an infinite level of customisation. Savvy brokers and their algo development partners can create increasingly sophisticated and high performing execution strategies in an agile manner. With or without high touch, the era of bespoke broking is back, but with much greater efficiency.

So how does the buy side best equip itself to leverage these solutions? Today’s SaaS trading tools provide the most robust and scalable option to facilitate the following capabilities:

  • Plan, back-test and analyse: Next-generation tools and platforms enable traders to efficiently extract vast samples of historical tick data, and even real-time analytics for back-testing and research. It is therefore possible to predict how a proposed trading strategy behaves over different market cycles to help determine long term profitability. Such insights can help generate custom and interactive real-time visualisations to reveal opportunities more intuitively.
  • Design, develop and deploy: With open source APIs, traders can convert their trading insights into custom strategies and connect their unique algorithms to a SaaS deployed trading network such as TradeSmart, and trade across all markets and asset classes via one connection. Through integrated compliance engines, the challenges of an increasingly complex regulatory landscape can be swiftly navigated allowing order flow to reach the desired counterparty, liquidity provider or venue as seamlessly and efficiently as possible.
  • Monitor, adapt and execute: A flexible workflow, supporting both solicited and unsolicited order generation requires a fluid interconnection between the OMS and the EMS, which often has not been the case. This interplay not only enables engagement with disparate and diverse data sources and multiple trading protocols, but also real-time execution reporting and analytics which can be fed into the pre-trade decision-making loop.

In summary, all-asset-class connectivity, open SaaS architecture and a fully integrated data model are the essential ingredients for optimal execution for the buy side. Access to pre-canned referential data, a flexible range of live market data and streaming price feeds, together with an out-of-the-box historical database that generates its own custom indicators and proprietary trading strategies, cannot be understated.  These content and functionality rich capabilities all contribute to the buy-side’s central objectives of best execution, the maximisation of operational efficiencies and the reduction of TCO.

Related content

WEBINAR

Recorded Webinar: Trade surveillance: Deploying monitoring and surveillance capabilities for today’s new normal

Let’s face it: The old ways aren’t coming back. A plethora of challenges brought on by the covid-19 pandemic, coupled with unrelenting market volatility and uncertainty, have pushed financial service firms to look for rigorous monitoring and surveillance solutions to meet the demands of the emerging trading landscape. Working from home (WFH) has increased the...

BLOG

Exegy and Vela Merge to Create Market Data and Execution Technology Powerhouse

Exegy, a provider of hardware accelerated solutions for market data and predictive analytics, and Vela, a market data and execution technology provider, have announced the merger of their business operations in an agreement backed by Marlin Equity Partners, a global investment firm with over $7.5 billion of capital commitments under management. Commercial terms of the...

EVENT

TradingTech Summit Virtual

TradingTech Summit (TTS) Virtual will look at how trading technology operations can capitalise on recent disruption and leverage technology to find efficiencies in the new normal environment. The crisis has highlighted that the future is digital and cloud based, and the ability to innovate faster and at scale has become critical. As we move into recovery and ‘business as usual’, what changes and technology innovations should the industry adopt to simplify operations and to support speed, agility and flexibility in trading operations.

GUIDE

Trading Regulations Handbook 2021

In these unprecedented times, a carefully crafted trading infrastructure is crucial for capital markets participants. Yet, the impact of trading regulations on infrastructure can be difficult to manage. The Trading Regulations Handbook 2021 can help. It provides all the essentials you need to know about regulations impacting trading operations, data and technology. A-Team Group’s Trading...