3 ‘Must Haves’ When Looking for an Automated Trading Solution
Trade automation is fast becoming a staple at many trading desks. As more desks struggle to balance increasing order flows with stagnant growth in trading desk headcount, to absorb this flow, many are finding an answer with trade automation. Automating trades based on a set of user-defined rule parameters gives trading desks the necessary flexibility to autoroute orders deemed as low-touch while giving traders ample time and opportunity to work high-touch orders with increased dedication and focus. By removing the highly liquid, low-touch orders from the trading desk, our clients can refocus their efforts on high-impact trades that require trader expertise and which drive trading desk ROI.
At SS&C Eze, we spend a lot of time talking with the thousands of traders using our platforms about how the challenges of competing in high volume, highly volatile markets. Time and again, traders tell us that they need more time to focus on the orders that matter most. These conversations have been an important driver in building out our automated trading features, and we’re excited about the value that automated trading can bring to our many traders. Check out these three must-haves when looking for a truly automated trading solution.
1. Algo Wheel
When combining the power of trade automation with the operational and regulatory benefits of an algo wheel, traders can take their trade automation to the next level. We consistently hear from traders that the algo wheel enables them to focus on strategy selection and algo inputs without having to worry about where to send orders. Combining an algo wheel with sophisticated automated trading tools can help reduce broker selection bias and empower traders to evaluate broker performance with full neutrality. Using an algo wheel as part of your overall automated trading workflow can give your trading desk the perfect balance of regulatory compliance, operational improvements, and trade execution efficiencies.
2. Front-End Controls Traders Can Adjust Directly
As the trading desk’s level of trade automation increases, so does the need for self-service management and oversight of trading rules with real-time monitoring. Trade automation is only as effective as the rules and parameters you’ve defined. In order to be truly intelligent and responsive to each trader’s individual needs, the system needs to provide traders an intuitive interface for directly building and managing rules, wheels, and priorities. Rule creation and modification should be performed in real time, so trading desks can recalibrate rules and wheels based on current market conditions with changes reflected immediately.
3. Partnership and Service
There is a high cost to falling behind, and you need confidence that your vendor is keeping pace with industry changes and is equipped to help you adapt as well. An exceptional automated trading solution relies heavily on partnering with clients who can play an instrumental role in shaping and validating any automated trading offering, from user experience to trade execution workflows. We’ve continued to invest in our trade automation feature by incrementally adding increasingly advanced and customizable rule conditions and parameters. A dedicated representative to your business will undoubtedly help you get to where you need to be when it comes to automated trading – cutting-edge solutions can’t develop properly without a strong client-vendor relationship.
If you're looking to leverage automated trading to autoroute low-touch orders and refocus your traders' efforts on the high-impact trades that drive trading desk ROI, learn more about Eze EMS Automated Trading.
Erik Baker is a Senior Product Manager at SS&C Eze. He is responsible for ideating, delivering, and driving adoption of the automated trading feature set for Eze EMS. In his role, he focuses on expanding workflow capabilities for SS&C Eze's best-in-class electronic trading platform and is an active member of the FIX Trading Community. Prior to joining Eze in September 2018, Erik held roles at Thomson Reuters and Bank of New York Mellon.