One third of buy-side signal end to automated trading
Just under one-third of buy-side traders believe automated trading “has had its day”, according to new research, with 31% of survey respondents claiming their firms were moving towards alternative trading models and away from automated trading. In contrast, zero sell-side firms agreed with the statement: “Automated trading has had its day. As an institution, we are moving towards alternative trading models.”
The report by consultancy MathWorks showed major changes to automated trading will take place on buy-side desks over the next 12 months, with only 23% of respondents saying levels of automated trading would remain the same as 2012.
The report also asked buy-side traders what the most important aspect of their trading strategies were, with “smart models” topping the list at 71%, followed by a split between the ability to respond to market changes and good back testing of infrastructure, both receiving 57% popularity.
MathWorks surveyed “43 experts” from the buy- and sell-side, as well and academia. The average assets under management for buy-side participants was US$481.6 billion.
Morgan Stanley rolls out European low-latency trading solution
Investment bank Morgan Stanley will extend its direct access trading solution Speedway to major European exchanges. It has been operating in US markets since 2006.
The system employs risk checks which give clients protection from erroneous orders accessing the market and can offer nanosecond latency.
“Our expansion of Speedway functionality in Europe has benefits for our entire institutional customer base and is a continued sign of our commitment to best-in-class trading architecture and addressing latency in trading,” said Kevin Twitchen, global head of product, Morgan Stanley Electronic Trading.
Orc offers new pre-trade risk monitoring and controls
Technology provider Orc has launched a new solution for managing and monitoring pre-trade risk to help brokers enhance DMA offerings and banks and trading firms to manage internal flows.
Orc Flow Control is based on a single user interface with real time monitoring of limits and trading activities for multiple participants and complies with the current European Sales and Marketing Association’s regulatory framework.
“Flexible pre-trade and compliance solutions are key for our customers in order to efficiently manage risk and the changing regulatory requirements,” said Jesper Alfredsson, vice president, product management at Orc.
Portware adds CBRE Clarion Securities to cloud
Trading solutions provider Portware has migrated US asset manager CBRE Clarion Securities to its cloud as part of a customised implementation.
The cloud solution lets the firm integrate two sets of infrastructures after the CBRE Group acquired ING Clarion Real Estate Securities to form the present company. It will use the cloud to access Portware Enterprise for execution, with access to venues and trading tools.
“We weighed a number of options, but our decision ultimately came down to the benefits of outsourcing to the Portware cloud environment for the support and high availability benefits, without having to compromise on the advanced trading technology and customisation we were accustomed to,” said Bob McManus, head of information technology at CBRE Clarion Securities.
Nasdaq OMX adds consumer demand data to news
Venue operator Nasdaq OMX has added consumer demand data to its machine-readable economic news service, Event-Driven Analytics, letting trading firms access the information before other end users.
The US consumer demand index focuses on trading behaviour with an accuracy of around 70%, the firm said.
“The addition of this data to the comprehensive suite of economic indicators currently delivered by Event-Driven Analytics will help subscribers make better informed business decisions,” said Brian Hyndman, senior vice president, Nasdaq OMX Global Data Products.
Neonet upgrades Swedish bank partnership
Execution services provider Neonet will provide execution services for one of Sweden’s top four banks. The bank is a long-term client of Neonet and will use the firm’s new Cost+ model for execution and increased cost transparency.
The solution brings together internal and third-party reporting, smart order routing technology and access to major markets.
“This confirms our belief that we have a very attractive execution service offering that is a good fit for both small and large companies and we look forward to seeing this bank benefit from our superior execution quality and fully transparent fee model,” said Andreas Parback, sales manager at Neonet.