An algo-trade stress testing tool has been launched by trading systems specialist QuantHouse.
The new solution will enable firms to meet their MiFID II stress testing requirements using low-latency technology hosted at Interxion in London.
The hosting at Interxion’s data centre means the tool is available via a single API so clients can connect to the platform easily to build stress testing scenarios.
MiFID II requires firms to have robust processes to provide effective control for increased market volatility. From January 2018, investment firms will have to stress test their algos using similations with twice the highest volume reached by the firm over the previous six-month period.
The stress testing tool will enable firms to test scenarios from 2x their highest volume up to 10x, QuantHouse said.
Stephane Leroy, co-founder and chief revenue officer at QuantHouse, added: “QuantHouse is dedicated to supporting clients’ regulatory needs and our new algo-trading stress testing solution is an example of our commitment to providing this support.
“The solution enables firms to test their production data up to 10x peak volume replaying market data events to ensure their algorithmic trading system can cope with any peaks in the market. Interxion was the ideal partner to help bring this solution to market, as they provide robust, reliable hosting and provide access to a wide and diverse group of capital markets participants.”