Username: Password: Forgotten your Password? Create an Account

Automated Trader Magazine Issue 03 October 2006

It is a common boast among magazine editors that they are “in touch” with their readership. However, the sad reality is that in the case of many magazines that cater for the professional financial market the most common form of reader feedback is probably a writ.

Therefore, it has been a pleasant surprise that after just two issues of AT the editorial mailbag is already filling out rapidly with communications of a less litigious nature. A common theme, particularly from the buyside readership, has been an interest in hearing more about the direction order management systems (OMS) have been taking. So we went and asked the people who make them in considerable detail on pages 64-70.

Just to make sure we were getting a wide angle on this, we also looked for an external viewpoint. Sang Lee of Aite Group kindly obliged with a typically rigorous look at order management systems and how they interact with their younger execution management systems cousins on pages 50-54. After so much hard work we felt some OMS R & R was deserved and that appears on pages 38-39 in the guise of AlgoComix, though it of course includes a serious underlying message.

To judge by the mailbag, another topic that has piqued buyside interest is multi asset algorithmic trading. After talking to four major sellside algo providers in the AT Round Table on pages 40-49 the consensus seemed to be “a fair way to go”. But then our Leader article by David Rutter of Brokertec tells a slightly different story. And our regular Exchange Views item implies that at least one major exchange is already lining up its multi asset algoducks.

If multi asset algorithmic trading is going to take off, a lot of algorithms will need to be implemented in OMSs and assets such as fixed income will need to join the party. On the first point, that means someone needs to come up with a standardised way of implementing algos, and John Goeller explains how FIX is doing just that on pages 34-37. On the second, the received wisdom is “not a hope”, but some of the buyside and sellside interviewees in our Market Place feature clearly disagree.

Finally, this issue sees the debut of AT’s new Peek Ahead column. No reader of any description has requested this.

Andy Webb - Editor
Andyw@automatedtrader.net

Other ways to read this issue:

e-Book / Digital Edition

at roundtable AT Round Table: Multi Asset Algo
FREE ARTICLE Multi asset execution algorithms have been touted as the next “big thing”. AT asked four major sellside providers for their viewpoint. With: - Tim Wildenberg, Head of Direct Execution Services Europe, UBS - Jeff Wecker, CEO of Townsend Analytics, a subsidiary of Lehman Brothers - Kevin Bourne, Global Head of Execution Services, HSBC - Jarrod Yuster, Head of Global Portfolio and Automated Trading, Merrill Lynch...full story
leader Leader: Fast Forward into the Multi Asset Future?
FREE ARTICLE A new evolution of synthetic trading is starting to generate interest – multi asset class algorithmic trading. If there is a need to spread trading activity across a wider asset base, why not let the machine help finesse some of the component trades? David Rutter, CEO of Brokertec and deputy CEO of ICAP Electronics Broking examines the issues from a market provider's perspective...full story
case study Case Study: Nordic Models - Auto FX at DnB NOR
FREE ARTICLE DnB NOR is Norway's largest financial services group with total assets of more than NOK1400bn. The group has an established history of proprietary trading that was expanded in mid 2005 with the addition of an API trading program for FX. AT talks to Jan Stromme, the program’s architect, and Paul Nerby, its head trader, about the program’s technology, techniques and markets....full story
exchange views Exchange Views: LSE Multi Asset Futureproofing
FREE ARTICLE Technology first came to the forefront at the London Stock Exchange in 1986 when the exchange abandoned floor trading. Since then, technology has only continued to increase in importance, particularly since the exchange’s switch to listed company status in 2001. AT talks to David Lester, the exchange’s CIO, about how it has responded to the effects of challenges such as algorithmic trading and the futureproofing of its new trading platform....full story
technology workshop Technology Workshop: Algo Integration – Can FIX Fix It?
FREE ARTICLE The FIX Protocol’s provision of a broad set of commonly accepted standards has radically simplified and reduced the cost of financial messaging in capital markets. A relatively recent innovation within FIX has been the work of the Algorithmic Trading Working Group which is evaluating the integration issues surrounding algorithmic trading. AT talks to John Goeller of Lehman Brothers, who heads the group, about its proposed solution for algorithmic trading interfaces....full story
spotlight Spotlight: Patsystems IQ-Trader
FREE ARTICLE Patsystems were one of the first ISVs to launch an electronic dealing platform when futures markets began migrating from open outcry in the 1990s. AT takes a look at the automated trading functionality within the latest incarnation of its mid-tier IQ-Trader platform....full story
feature Feature: Is Fixed Income Ready to Hit Algo Street?
FREE ARTICLE Fixed income has been long regarded as the Cinderella of algorithmic trading – while equities and then FX would enjoy the ball, fixed income would be left behind. However, while we may still be a long way from a glass slipper scenario, there are now glimmerings of real activity and serious intent from both the buy and sellside. ...full story
technology forum Tech Forum: The OMS - Moving On, Moving Up
FREE ARTICLE One type of trading technology that has been much affected by the growth in algorithmic trading is the OMS. AT talks to five leading OMS vendors to find out how changes in the market are affecting their businesses and how they are dealing with those changes. With: - Eric Bernstein, head of sales for North America at Linedata - Richard Hooke, global product director at Latent Zero - Michael Roberts, director of European operations at ITG Solutions Network - Stephen Engdahl, Director of Product Management at Charles River Development - David Csiki, managing director at INDATA...full story
my machine My Machine: The AT Interview - Amplitude Capital: Precision Automation
FREE ARTICLE Automation, both in terms of trading and back office processes, is an intrinsic part of Amplitude Capital’s day to day operation. AT talks to two of Amplitude’s principals, CEO Karsten Schroeder and CFO John Harrison about the firm’s technology, methods and ambitions....full story
peek ahead Peek Ahead: A Misleading Glimpse of the Future
FREE ARTICLE “AT pays a visit to a seriously secretive organisation and sees a human free vision of the automated trading future. Or possibly not…”...full story
sponsored articles Every trader needs an algorithm
FREE ARTICLE New breeds of aggressive algos are being designed for active DMA traders, whilst changes in market structure are making algos essential....full story