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?

Advertisements

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


RSS feed for comments on this post. TrackBack URI

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Create a free website or blog at WordPress.com.

%d bloggers like this: