Trading technology provider Fidessa has added the BlueBox algorithmic trading system to its hosted Asian platform for brokers. The system will initially be available in Hong Kong and Singapore. BlueBox has been available in Japan since 2007.
The BlueBox offering gives brokers access to pre-built, industry-standard algorithmic strategies and a toolkit for those who want to build and offer their own strategies, allowing them to automate their own trading strategies and offer their buy-side clients direct access to the algorithms.
Fidessa has initially added VWAP, TWAP, percentage-of-volume, passive and short-sell strategies to the Asian platform. The algorithms are tailored to the local markets. BlueBox is aimed largely at mid-tier brokers.
“A lot of the demand at this point is coming from the local buy-side and sell-side firms because these markets have not yet had access to many of these algorithmic styles,” David Jenkins, business solutions manager for Asia-Pacific at Fidessa, told theTRADEnews.com. “BlueBox lowers the financial barriers to getting into the algorithmic space, and local brokers are now able to offer a credible algorithmic service to their buy-side clients without having to make a massive investment in technology, manpower and resources.”
Jenkins says the BlueBox strategies have common components and can be adapted for use across the Asian region. However, he added that there are no firm plans yet to introduce the platform to further Asian markets.
“Some of the region’s exchanges are not ready to accept algorithmic capabilities yet and they have to evolve,” said Phil Slavin, head of sell-side product strategy at Fidessa. “A combination of client drivers, venue evolution and our own strategic planning will determine which markets we go to next.”
However, the firm is planning further developments to the Singapore and Hong Kong BlueBox offering. “We will be releasing additional strategies throughout the year and also developing a consultancy around strategies and helping people get on board and design their own,” said Jenkins.
BlueBox is part of Fidessa’s advanced trading suite, which includes list management, wave trading, pairs trading and analytics. All of these functions are integrated with Fidessa’s trading platform. This latest implementation of BlueBox is the fifth since the product’s launch in 2007. It is currently available in the US, Europe, Japan and Canada, and is being used by 60 clients.