Chinese investment bank CITIC Securities can now offer customised algorithms to its buy-side clients, using the Progress Software's Apama algorithmic trading platform.
Shenzhen-based CITIC Securities will use the Apama platform to create execution algorithms that can operate on China’s domestic markets. The algos include pre-packaged traditional participation and benchmark algos such as volume-weighted average price, time-weighted average price and percentage of volume. They also include more advanced strategies that have been adapted according to buy-side client requests, such as implementation shortfall.
“Order volumes in China are increasing,” Richard Bentley, industry vice president, capital markets at Progress Software, told theTRADEnews.com. “CITIC wanted a platform that lets them provide a suite of standard and modified algos for sophisticated trading firms. It was very important to have that customisable element – and that’s what this platform provides.”
Bentley added that customised algos are particularly useful in markets such as China, which have a different liquidity profile from developed markets such as the US – leading to potentially greater market impact unless firms can find an automated means to safely enter large orders into the market.
Progress Software acquired Apama, formerly an independent complex event processing specialist, in 2005. The division initially focused on the US and European markets, before turning its attention to the BRIC economies. Aside from its offering in China, Bentley estimates that the company has acquired some 25 customers in Brazil within the last three years.