Fidessa has launched a new order analytics service for derivatives to give market participants greater control over their use of derivatives algos.
The technology vendor said it is preparing for a huge growth in algo execution of derivatives, pointing to a recent TABB report that estimates US buy-side futures volume executed via algorithm will grow to 30% in 2015, up from 4% in 2011.
Fidessa added that, as futures commission merchants (FCMs) are increasing levels of automation to cut costs, it will be essential for them to be able to monitor how orders are performing in real time and automatically identify deviations.
It’s order analytics service is integrated with Fidessa’s existing futures and options trading platform, allowing users to monitor orders in real time and adjust algo parameters to react to changing market conditions. It also offer post-trade services to show execution performance.
Yuriy Shterk, head of derivatives product management at Fidessa, said: "We recognised early on that we would need a ground-up approach that reflected the order types and strategies that are unique to global derivatives markets. Demand for this emerged from our FCM customers who, in turn, were being asked for better analytics by their own customers.”