Technology firm Horizon Software has launched Horizon Delta One Trader, an execution management system (EMS) designed specifically for trading ‘delta one’ strategies.
Delta one products are essentially packaged solutions, often based on derivatives or exchange traded funds, that are used by institutional investors to gain an exposure, for example to a frontier market, without needing to purchase the underlying securities.
The new tool is based on the company’s existing Horizon Trader EMS, which offers low-latency market access and computer-based trading features. It adds simultaneous trading of instrument pairs and automatic trading of delta one hedging instruments in futures or baskets to the regular trading features of the Horizon Trader EMS.
Horizon Delta One Trade’s interface allows traders to configure relationships between the traded delta one product and other instruments such as futures, baskets, stocks and foreign exchange. The system can then automatically hedge the delta one product with simple instruments, such as futures or stocks, or baskets.
According to Horizon, one of the benefits of the new EMS is its short reaction time, allowing traders to take advantage of arbitrage opportunities in delta one instruments.