Hedge Fund in a Box
March 4, 2010 – 1:07 pmAs the proposed “Volcker Rule”, seeking to prevent banks from engaging in proprietary trading, seems to be gaining support at the highest levels (only this week, President Obama again voiced his support for the proposals), more and more Wall Street firms are spinning off their own independent hedge funds, to enable them to continue their forays into high frequency trading and other controversial activities.
Some canny software vendors have recognized an opportunity here, and are rushing to release various “hedge-fund-in-a-box” solutions to cater for the technology requirements of these new trading firms.
Two software vendors who have come together to capitalize on this new paradigm are London-based Statistical Research Laboratory (SRL) and Bedford, Mass-based Progress Software. SRL specialize in trading desk and portfolio management software, whereas Progress specialize in complex event processing (CEP) systems, with a particular focus on trading algorithms.
sub penny trading - hedge fund in a box
Together they are launching a new combined technology platform aimed at independent hedge funds, particularly those focused on high frequency trading and sub-penny trading. The new platform will reportedly provide full front-to-back office functionality including analytics, trading tools, feed handlers, order routing and risk management.
According to sources at the High Frequency Trading Review, spokespeople from both companies insist that together, they are offering the market a completely unique solution. One of the major benefits they are pitching is the fact that it is offered as a fully hosted, ASP solution, requiring no investment in expensive hardware or data centre environments on the part of the customers. This allows customers to get on board quickly and at relatively low cost.
It is surely now only a matter of time before all the other software vendors start piling into this space. It certainly makes sense for startups in the high frequency trading space to adopt fully hosted solutions to satisfy their technology needs. So we expect to see similar announcements from the likes of FTEN, Fixnetix, Ullink and QuantHouse before too long.
Related posts:
Sorry, comments for this entry are closed at this time.