Trading software and analytics provider Tethys Technology has added a new module for options auto-quoting and centralised, risk-managed trading to its Execta execution management system (EMS).
According to Tethys, the module allows users to take advantage of market opportunities instantaneously in an automated fashion and manage risk on large portfolios of options.
“Increasing market data rates and fast-moving, fragmented markets have made managing options orders and hedges a significant challenge. Execta options spread trading and auto-quote strategies allow managers and traders to automate this process to improve execution performance and lower risk”, said Nitin Gambhir, CEO of Tethys in a statement. “In addition, our options portfolio module provides the ability to monitor all the greeks and trade vega and delta exposures in a unique manner that enhances execution efficiency and reduces risk.”
With the module, Execta users can upload fair-value volatility curves via text file, application programming interface or a link to Microsoft Excel, and then auto-quote on both sides of the market using either embedded risk management and quote price adjustment controls or custom logic created with Tethys’ scripting language.
Traders can also use the new module to execute complex, multi-leg spread trades on a semi- or fully-automated basis to achieve their defined spread limits, the firm said.
The Execta EMS, a broker-neutral system, supports trading in equities, options, futures and FX.