01.26.2012

Algo Development Platforms Expand

01.26.2012
Terry Flanagan

OptionsCity’s Freeway enables multiasset algo design.

Derivatives trading technology is evolving to support multi-asset trading strategies.

A case in point is Freeway, a server-based, multi-asset platform for algorithmic trading that’s being offered by OptionsCity Software, a provider of end-to-end electronic trading software.

“Freeway enables market makers and proprietary trading firms to develop and deploy trading strategies quickly,” Hazem Dawani, CEO of OptionsCity Software, told Markets Media.

For OptionsCity Software, a Chicago-based financial technology company that provides real-time electronic trading solutions to options traders, Freeway represents an extension into new categories of assets and traders.

“With Freeway, we are expanding our reach to algorithmic trading in futures and equities, as well as options,” said Dawanii.

Traders can customize algorithms in either Java or Scala code. These algos will execute trades, dynamically reconfigure themselves based on changing market conditions, and perform market analysis, including historical comparisons and risk monitoring.

“Developers and traders develop and backtest their own algos in Java or other programming languages, then put them into production on a server that’s co-located next to an exchange matching engine, for sub millisecond execution time,” Dawani said.

Unique to OptionsCity Freeway is The Algo Store, an online algorithm repository which can be used to create, purchase and download algorithms, as well as view various algorithm examples. Third-party quantitative analysts are able to use The Algo Store to write and sell algorithms or components to traders around the world.

The Algo Store provides pieces of code for basic trade characteristics, allowing programmers to create new algorithms faster and react more quickly to changing market conditions, said Dawani.

“The Algo Store is an online algorithm repository, providing a collaborative environment and a market for creating, purchasing, and downloading algorithms, he said.

Freeway integrates with Metro, OptionsCity’s flagship options tracing platform. Metro’s centralized server-based risk management monitors the risk associated with Freeway trades.

Related articles

  1. Allowing algorithms to control the supply and demand of crypto was challenged by Terra Luna.

  2. CME Boosts European Energy Business

    Infrastructure and sustainability will be one of the biggest opportunities in alternative investments.

  3. The broker's algo development team gains access to high quality, granular Level 3 data.

  4. Trading Europe From ‘Across the Pond’

    Bank aims to gain share from its systematic approach to trading, market structure proficiency and modern techn...

  5. The firm will be rolling out algos for institutions to navigate crypto market structure.