Smart Trade Technologies has agreed a deal to integrate EsperTech’s complex event processing (CEP) capabilities into its smartTrade liquidity management system (LMS).
The smartTrade LMS is used by buy- and sell-side firms to manage liquidity for best execution, smart routing of orders across multiple asset classes and geographies, and tighter control of order flow for risk management purposes. The system comprises four elements:
LiquidityAggregator; LiquidityCrosser; LiquidityOrchestrator, a smart-order router; and LiquidityConnect, which link to multiple execution venues.
EsperTech uses an open-source Java CEP engine that detects and correlates complex situations in real time when user-defined conditions occur among large volume event streams. CEP is used by financial market participants to identify and exploit trading patterns using streams of market data.
Smart Trade co-founder and CTO David Vincent said the deal meant customers would be able to rely on a domain-specific CEP for their smart order routing, crossing and aggregation strategies on top of already existing programmable rules within the smartTrade LMS.
CEP will also improve the rules applied within the smartTrade LMS to produce complex levels of aggregated depth, by generating indicators derived from the raw feeds, such as moving averages, correlation factors and other statistics.