FinTech vendor Fidessa has just launched a new order analytics service for derivatives transactions, officials say.
Fidessa’s Order Analytics aims to provide “greater precision to the control and measurement of derivatives [algorithms],” a company statement says. The service is fully integrated with Fidessa’s global futures and options trading platform, which will enable users to monitor all orders in real time and adjust algorithmic parameters accordingly, the statement says.
Order Analytics also features post-trade functionality that shows execution performance, providing additional transparency, officials say. The service is intended to ease the exception handling process for those firms trading in derivatives markets.
“Order execution is increasingly becoming an exception handling process as global derivatives markets become ever more dominated by algorithmic trading,” according to a Fidessa statement. “This is one of the key responses from [futures commission merchants] as they increase their levels of automation to meet the cost pressures of operating today,” officials say.
“But without the ability to monitor how orders are performing in real time, and to automatically identify deviations, it can be a false economy,” the statement adds. “On top of this, greater regulatory scrutiny means that both the buy side and the sell side need to really understand how the algos they are using are working, whatever the market conditions.”
“We recognized early on that we would need a ground-up approach that reflected the order types and strategies that are unique to global derivatives markets,” says Yuriy Shterk, head of derivatives product management at Fidessa, in the vendor statement. “Demand for this emerged from our FCM customers who, in turn, were being asked for better analytics by their own customers. Being able to put this capability directly onto their customers’ desks is already proving to be another source of competitive edge for those firms. Greater regulatory scrutiny means that the need to understand how orders are performing is becoming a critical issue.”
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