OTAS Plugs Trading Analytics into Portware EMS
Incorporating OTAS' tools will allow Portware to offer deeper analytics without shifting its focus from its EMS.
The two vendors held talks over the summer before recently signing an official agreement. Portware is currently integrating OTAS Technologies' analytics into its workflow, and will beta test the offering with customers before a full launch later this quarter.
Under the deal, OTAS will integrate two of its core analytics offerings into Portware's EMS. The first is its microstructure analytics application, which provides analysis of real-time microstructure events and alerts traders to usual movements in volume, spread and price of equities. The application leverages real-time market data sourced by OTAS directly from exchanges, as well as a range of quantitative models to analyze previous behavior of stocks.
Once the microstructure analytics application is integrated in Portware's Enterprise environment, the vendor's asset management clients will be able to use the application to monitor the stocks that they are interested in trading or have traded in the past. Leveraging historical data, OTAS has calculated its own model for each stock to determine movements that constitute "usual" behavior.
The second piece of the deal is OTAS' summary application, which includes information relevant to the equities markets, such as options and credit default swap data, insider transaction, technical data, news flows, events and dividend yields. Traders using the application can query an individual stock, and have the application carry out analysis and provide them with a sentence or paragraph in English describing the conditions. OTAS uses "best-of-breed" providers for each dataset, but does not expose the raw data to traders.
"We are very much not interested in regurgitating data. Rather, we want to provide the same analysis to traders that they would get after many hours of work," says OTAS chief executive Tom Doris. "We have feed handlers that understand how to analyze information for each dataset as analyzing insider transactions is different from analyzing sentiment in the options market."
Rather than providing the analytics as a standalone product, Portware is seeking to implement a deeper integration to provide customers with "seamless" experience, Doris says. "Portware is managing the workflow integration, but is not building an app store. We are currently working with them to explore ways to deliver a deeper integration and more detailed analytics into the EMS front end," he adds.
Doris says there has been a major change in the industry over the past 12 months, as trading platforms have recognized the need to provide specialized analytics in the trader workflow. However, he adds the advantage of partnering with a third-party provider like OTAS, rather than building analytics in-house means that firms like Portware can focus on their core business. "It's not that they wouldn't be able to do it in-house, but that it would shift their cultural focus. They are an EMS provider, and they need to focus on EMS regulations, the constantly changing landscape of connectivity, and algorithmic trading issues."
OTAS currently provides analytics for equities instruments, exchange-traded funds and futures, but may look to expand its coverage in 2016 to include other assets traded by Portware's customers, such as fixed income.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
More on Emerging Technologies
Quants look to language models to predict market impact
Oxford-Man Institute says LLM-type engine that ‘reads’ order-book messages could help improve execution
The IMD Wrap: Talkin’ ’bout my generation
As a Gen-Xer, Max tells GenAI to get off his lawn—after it's mowed it, watered it and trimmed the shrubs so he can sit back and enjoy it.
This Week: Delta Capita/SSimple, BNY Mellon, DTCC, Broadridge, and more
A summary of the latest financial technology news.
Waters Wavelength Podcast: The issue with corporate actions
Yogita Mehta from SIX joins to discuss the biggest challenges firms face when dealing with corporate actions.
JP Morgan pulls plug on deep learning model for FX algos
The bank has turned to less complex models that are easier to explain to clients.
LSEG-Microsoft products on track for 2024 release
The exchange’s to-do list includes embedding its data, analytics, and workflows in the Microsoft Teams and productivity suite.
Data catalog competition heats up as spending cools
Data catalogs represent a big step toward a shopping experience in the style of Amazon.com or iTunes for market data management and procurement. Here, we take a look at the key players in this space, old and new.
Harnessing generative AI to address security settlement challenges
A new paper from IBM researchers explores settlement challenges and looks at how generative AI can, among other things, identify the underlying cause of an issue and rectify the errors.