Aegis Software Extends Algo Trading to Foreign Exchange; Multi-Asset Order Execution Platform Establishes Montage Across Cash FX ECNs.NEW YORK -- Today at the SIA Technology Management Conference, Aegis Software Inc. announced added support for foreign exchange ECNs via its AthenaTrader order execution system for global equities, futures, options and FX. The integration pairs AthenaTrader's suite of automated and algorithmic trading Algorithmic Trading A trading system that utilizes very advanced mathematical models for making transaction decisions in the financial markets. The strict rules built into the model attempt to determine the optimal time for an order to be placed that will cause the least amount of impact on a stock's price. tools with such leading ECNs as Hotspot FXi and Currenex ESP, which support automated trading through instant dealing, anonymous, multibank FX ECN structures. AthenaTrader users will be able to implement automated and algorithmic trading strategies directly into the spot foreign exchange market, as well as add a foreign exchange facet to complex automated trade strategies that are executed across the global equities, futures, and options markets currently available on AthenaTrader. AthenaTrader is linked to the ECNs via an internal FIX gateway, providing users with instantaneous FX trading capability and live, streaming, executable As an adjective: able to be run in its current format. As a noun: a program file ready to run in a particular environment. See executable code. market data, supplied by the ECNs' network of bank market makers and institutional clients. The FX montage Montage - An object-relational database management system from Montage Software, the commercialisation of POSTGRES. is installed at several sites, including one of the largest hedge firms in the world. AthenaTrader includes innovative facilities for trading FX across fragmented markets. Real-time prices from several liquidity providers can be displayed in a "montage", enabling traders to find the best price available and to sweep the top of book across several ECNs in one operation. Target positions may be staged in a shared blotter Blotter A record of trades and the details of the trades made over a period of time (usually one trading day). The details of a trade will include such things as the time, price, order size and a specification of whether it was a buy or sell order. The blotter is usually created through a trading software program that records the trades made through a data feed., for simultaneous handling by several traders on a desk. Additionally, the system enables clients to define and trade "synthetics", virtual instruments that are derived from other products. Using AthenaTrader, all capabilities can be controlled in a programmatic fashion to support algorithmic trading. "The rise of electronic foreign exchange trading platforms that provide real-time, executable quotes and instantaneous, anonymous trade executions have created the necessary conditions for the development of robust automated trading strategies in spot FX," said Adam Sussman, Consultant, The Tabb Group. "As the electronic trading platforms gain liquidity, narrow bid/offer spreads and diversify client flows, they will attract even more liquidity from automated trading shops." This evolution is underway. For example, direct client-to-client matches account for approximately 45 percent of daily trading volume on the Hotspot FXi ECN, totaling several billion dollars. This type of trading activity is driven, in part, by the adaptation of proprietary algorithmic and statistical arbitrage Statistical Arbitrage A profit situation arising from pricing inefficiencies between securities. Investors identify the arbitrage situation through mathematical modeling techniques.Notes: Statistical arbitrage is not without risk it depends heavily on the ability of market prices to return to a historical or predicted normal. See also: Arbitrage, Market Arbitrage, Risk, Technical Analysis models as used in equities and futures, into spot FX. About Aegis Software Inc. Aegis Software has been addressing the trading and quality assurance needs of the financial services industry since 1994. Aegis' products include algorithmic trading ("Athena"), FIX, CMS, CTCI CTCI - Computer to Computer Interface and LiffeConnect protocols ("Athena Gateway Server"), as well as the premier FIX testing solutions in the industry: Exchange Simulator and Client Simulator. For more information, visit www.aegisoft.com or call 212-268-3100. |
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