01.26.2012
By Terry Flanagan

Algo Development Platforms Expand

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. Algorithms have become more prevalent in the spot FX market.

  2. Congress Unlikely to Act on HFT

    QB’s Algo Suite for futures market trade execution is also being co-located to HKEX.

  3. Breaking data silos is key to deploying automation beyond 'nuisance' orders.

  4. They can be used on quantum hardware expected to be available in 5 to 10 years.

  5. Regulation and Liquidity Top Concerns in Fixed income

    Streaming blocks change the basis of matching and price discovery so institutions can find new liquidity.