The new trading system launched by PLUS Trading Solutions, the technology arm of retail focused market operator PLUS Markets Group, will offer prospective venue operators a system that is capable of complying with forthcoming European regulation.
The new platform, called PLUSMatch, is based on a flexible framework that supports multiple asset classes – including equities, derivatives, FX and bonds – and can be customised to suit the requirements of the trading venue operator.
PLUS-TS says its new platform has an average latency of 200 microseconds to external clients via a standard FIX connection, with a message throughput of 150,000 messages per second. The trading engine can also be scaled and optimised to cope with one million messages per second and offer a latency of sub-100 microseconds.
As part of the launch of PLUSMatch, PLUS-TS has also announced a partnership with data solution provider. PLUSMatch will incorporate QuantHouse’s low-latency market data product QuantFEED as well as its European best bid and offer product. QuantFEED performs microsecond decoding and delivers normalised data through a single application programming interface.
PLUS-TS will also leverage the regulated investment exchange status of PLUS Markets Group, to help clients manage their surveillance and compliance functions, as well as filing applications to regulators.
According to Hirander Misra, the former COO of multilateral trading facility Chi-X Europe, who is advising PLUS-TS via his independent consultancy Misra Ventures, the demand for an entirely outsourced trading platform solution is growing.
“We are aiming to sign at least two customers before the end of Q1 2012,” Misra told theTRADEnews.com. “If you consider that the typical cost of operating an MTF is between £10-15 million, PLUS-TS can offer the same functionality at around 20% of the cost.”
PLUS developed its new platform in response to new regulations – the MiFID review and European market infrastructure regulation (EMIR) – that will introduce a new category of trading venue called organised trading facilities and require many derivatives products that are currently traded OTC to be brought on-exchange. MiFID II will also redefine the way many broker crossing networks and systematic internalisers are able to function.
Misra adds that he expects demand for PLUSMatch to grow as the regulations move closer to being finalised. MiFID II is scheduled for completion in 2013, while EMIR could be finalised by the end of this year.
“Some firms are keen to benefit from first mover advantage in the same way that Chi-X Europe pre-empted the introduction of MiFID by launching before the directive was finalised,” said Misra. “There is enough clarity in the rules to identify some of the instruments that will move to an exchange-traded environment.”