Programmatic Trading

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.

  • Simultaneous connection to multiple electronic market platforms – e.g. RORC, Trayport, ICE, APX
  • Powerful rules definition engine with 20 core trading rules pre-defined – no limit on the complexity of trading rules that can be created across markets, instruments, and durationRule completion leads to Trade Execution or Trading Alert
  • All main order types supported – “Good for the Day”, “Good until Cancelled”, “Kill or Fill”, OCO, Partial Fills, Hidden, and the ability to define the time a rule goes “Live”Executes simple or complex (multi-leg) trade types far faster than any human trader
  • Detect and trade-out arbitrage opportunities across/within markets before anyone else can
  • Improve risk management – protect portfolio via imposition and execution of price and volume limits and stops
  • Foreign Exchange and Energy Unit Conversions (e.g. £ to €, Therm to MWh)
  • Established integration with leading deal capture and ETRM solutions