In a standard environment traders from various organisations will watch the market using screens from one or more of the trading venues. If they spot a deal which fulfils their price and volume requirements, they will trade the order and make the deal with the counterparty. However, in today’s volatile markets, prices may well have moved in the time between deal identification and execution, leading to slippage, poor fills, and missed opportunities.
This can cause immense frustration and can also have a very real adverse impact on both the risk management position and bottom line for the business, especially if missed arbitrage opportunities and stop-loss trades are involved.
In addition, some complex deals structures involving a number of legs are hard for a trader to enter with any degree of speed and reliability. This can preclude these complex deals from being traded at all.
Traders require a solution that executes trades as soon as they appear, while remaining under the firm control of traders and risk managers – “Programmatic Trading”.
To meet the need for rapid trade execution, Tradelogic has produced its TRSEE solution, a rules-based trade execution engine for carrying out and optimising programmatic trading. Connected to any number of electronic trading platforms, TRSEE can monitor the markets for compliance with rules defined by the trader, either executing trades or issuing alerts.