Mostly… fixed income and cross product eTrading

October 1, 2007

Move Towards Cross Asset Algorithms

Filed under: etrading, Nuts and Bolts — holky @ 9:55 am

In the EFN article about algorithmic trading getting smarter, we hear that algorithms are spreading accross asset classes from equities to futures and options to foreign exchange, as companies look at cross asset trading to hedge a position.  This approach is also being fuelled also as part of desire for risk mitigation of ‘unexpected events’ given recent market conditions, but could this just be putting an additional risk in the making?  With the current generation of sellside pricing and trading systems all still being largely product specific (indeed, product silo’d), could one market upset lead to an enormous cross asset meltdown as every dealers plumbing that has been put in place to join the dots is put under pressure?


1 Comment »

  1. yeah, but how many firms actually have clients trading futures via algos via FIX right now? I think it’s 4 and a half.

    So much hot air on this subject in the trade press, but how many people are actually dealing…

    Comment by John Greenan — October 1, 2007 @ 11:18 am

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