Optimal Approach to Algorithmic Trading
Optimal Approach to Algorithmic Trading The best execution through use of algorithmic tools depends to a large extent on the presence of various critical ingredients, such as: Clear understanding of portfolio management strategies and objectives Robust pre-trade models Balancing timing and impact cost issues Effective intelligent integration of OMS and direct market access trading platforms Close, iterative relationships with algorithmic trading providers Thorough post-trade analysis and feedback All these critical requirements make the design of the algorithmic platform a Big challenge requiring the following attributes: Adaptable: Providing high speed transmission of market data and transaction messages to other applications and users Offering a vendor independent platform that is able to accept and distribute data from any market data vendor Having pre-integrated security and monitoring for both compliance and cost effective operations Strea...