Predictive analytics will be the next area of focus for providers of execution management systems (EMSs), according to Alfred Eskandar, CEO, Portware, which recently completed the purchase of technology assets from Aritas.
“We made the Aritas acquisition because we believe that trading platforms will need to be driven by predictive analytics and artificial intelligence,” Eskandar told theTRADEnews.com. “This will make the automated workflow that we already provider for buy-side traders more intelligent and gives the trading desk even more functionality to work with.”
Portware struck a deal to buy technology provider and block trading venue operator Aritas’ Algorithmic Switching Engine and Alpha Pro solutions. Eskandar claims the purchase makes Portware the only EMS provider to offer predictive analytics.
Alpha Pro uses real-time predictive analytics and market signals to recommend trading strategies and works in conjunction with the Algorithmic Switching Engine to choose from 180 algorithms that are used during the trade’s lifetime.
“The next generation of EMSs will be more like trading platforms that drive more efficient order management generally, as well as execution,” said Eskandar, adding that the availability of Aritas’ assets will help to enhance buy-side firms’ relationships with their brokers.
In addition to the technology, the purchase also includes 21 members of staff that were responsible for building, designing and developing Alpha Pro and the Algorithmic Switching Engine.
EMS for HFT
Meantime, low-latency services provider Mantara has snapped up broker-neutral EMS provider UNX.
Mantara will use the acquisition to develop a platform for high-frequency traders that includes pre-trade risk checks and high-speed DMA.
UNX’s Catalyst EMS uses an open application programming interface that lets users customise the system. It offers products and services from third-party vendors, information providers, trading venues and broker-dealers. UNX also offers Marketplace, an financial app store that includes research, news feeds, algorithms, order routing and analytics software. UNX staff will be fully integrated across Mantara’s client-facing business in Los Angeles and New York.
“Driven by client demand for a next generation EMS coupled with our state-of-the-art risk system, we sought technology based on a shared philosophy,” said Mantara president and CEO, Michael Chin. “UNX’s innovative Catalyst suite shares the same guiding principles underlying our ultra-low latency technology.”