Futures and Options on Futures Trading Platforms: Where Are They Now?
Report Summary
Futures and Options on Futures Trading Platforms: Where Are They Now?
Today’s futures and options trading platforms prioritize speed, direct market access, algorithmic order routing, and customized strategies that cater to high frequency trading firms.
Boston, January 8, 2013 – A new report from Aite Group reviews the major trading platform technology vendors in the futures and options on futures space. Based on vendor briefings and product demos conducted in 2012, the report profiles two types of trading platforms: vendors dedicated purely to derivatives products and market data/OMS firms that track cash and derivatives products across multiple asset classes.
In the realm of futures e-trading, speed remains the leading concern. Vendors are competing to reduce the speed of routed orders to the exchange’s matching engine, and server colocation is now almost required for the competitive futures trader. Important changes impacting futures e-trading are direct market access, the growth of algorithmic order-routing processes, and the arrival of GUI-less, high frequency trading shops.
“Ongoing, transparency-promoting global regulatory changes and the centralization of clearing and trading for OTC derivatives instruments will force more electronic trading in the futures and options space,” says Howard Tai, senior analyst with Aite Group and author of this report. “Aite Group predicts that this movement will drive steady growth of listed derivatives volume for many years to come.”
Vendors profiled in this report are Bloomberg, CQG, FFastFill, Fidessa Group, RTS Realtime Systems, SunGard Data Systems, and Trading Technologies International.
This 44-page Impact Note contains 24 figures and six tables. Clients of Aite Group’s Institutional Securities & Investments service can download the report.