BNP Paribas Electronic and Algorithmic Trading Services (BEATS) seeks to meet user needs with new developments to its algos.
The firm finds the research and development phase the most challenging aspect of development, where ideas are transformed to fit market-specific rules and client needs. During testing, the firm tests features against a thorough set of specific cases to ensure desired behavior is achieved before releasing to users.
The firm seeks to enhance the ability of algos to
find liquidity; include advanced posting intelligence; increase the speed of
access to venues; and improve the ability of algos to judge risk.
It sees algos as becoming more multifaceted with more
contingent behavior, which means there will be more triggers and parameters
customised for algo users and the interaction between all of them will increase
On simulated orders, for instance a simulated market order in Hong Kong,
the firm can adjust risk thresholds according to stock prices to counteract the
effect of varying tick sizes. Other Asia-specific innovations include order
BEATS’ algos are built locally by people with local expertise. The close proximity to local knowledge for instant feedback by users allows algos to be tweaked with a low turnaround time.