Progress Apama, the algorithmic trading division of Progress Software, has implemented its complex event processing (CEP) platform for equity execution at the Commonwealth Bank of Australia (CBA).
By using the CEP platform, CBA will have access to Apama’s algorithms, allowing the bank to automate select transactions. According to Apama, the installation of its platform will enable CBA to expand its coverage and process orders more efficiently in accordance with specific instructions or business rules, freeing up operators to focus on business requiring manual expertise.
“We worked with CBA and used their expertise to translate the logic they wanted to use and tweaked our algorithms specifically for the stock profiles and market characteristics of the Australian market,” Dr John Bates, Progress Apama’s founder and general manager, told theTRADEnews.com.
Bates also noted that installing Apama would allow CBA to better manage trading across multiple venues as they come online in Australia. Alternative venues Chi-X and AXE ECN are expected to launch in the country when regulatory approval has been granted.
“Implementing the Apama platform has helped to prepare CBA for the changes to Australian market structure in terms of market fragmentation,” said Bates. “We have worked with firms over the years in smart order routing and market aggregation to help them handle liquidity fragmentation, and this is one area where we will be working with CBA in the future.”
The platform will also enable CBA to modify the strategy logic used to build the algorithms so they can be tailored for their specific needs.
“Our product allows easy adaptation of algorithms to other markets, so clients can change how they work themselves,” added Bates. “In this case, it will help when stocks are dual listed in Australia and New Zealand, for example. Dual-listed instruments can be price-converted into a single currency using an FX feed, then algorithms can be used to look for statistical arbitrage opportunities.”