Trading technology provider FTEN has agreed to make its risk control and high-frequency execution services available to clients of MarketPrizm, a European trading infrastructure provided by Chi-Tech, the technology division of trading platform operator Chi-X Global.
The companies expect the joint offering to be available by the end of September. “We are rolling out test and production instances over the next several weeks,” Ted Myerson, CEO of FTEN, told theTRADEnews.com.
The agreement will allow Chi-Tech to pre-install the FTEN risk control and execution tools on MarketPrizm, giving users the option to employ them when trading on the network.
The MarketPrizm trading infrastructure offers access to European trading venues as well as a range of third-party applications and services. For example, brokers can host their execution algorithms on the system. MarketPrizm is
underpinned by a fibre-optic connectivity network, dubbed PrizmNet, which is currently linked to 19 European trading venues.
FTEN provides high-frequency traders with a low-latency, multi-venue execution platform, and a real-time risk control system to the brokers that offer traders sponsored access to execution venues.
As such, the two firms contend the joint offering will be attractive to both the buy- and sell-side.
“It gives the sell-side the high level of control they need over their clients’ trading risk, which in turn enables the sell-side to give the buy-side full control over the algorithms and trading rules they want to set up,” said Nicholas Levy, managing director of MarketPrizm. “Our discussions with the buy- and sell-side show this is meeting a need in the market.”
The agreement between Chi-Tech and FTEN closely follows FTEN’s announcement of its intention to establish a European division based in London, UK. The US firm was tempted into Europe by the increase in high-frequency trading and growing use of sponsored access.