QuantHouse Launches Algo-Trading Stress Test
QuantHouse, a vendor of end-to-end systematic trading solutions including innovative market data services, algo trading platform and infrastructure solutions, announced the launch of its algo-trading stress testing solution to help financial firms meet their MiFID II testing requirements. Hosting the new platform at Interxion in London, ensures that all QuantHouse and Interxion community members benefit from ultra-low latency access to the new solution.
Partnering with Interxion, a provider of carrier and cloud-neutral colocation data centre services in Europe means QuantHouse’s new stress testing solution is made available via a single cross connect through a single API, enabling clients to rapidly connect to the platform in order to build stress testing scenarios.
As part of the MiFID II regulation coming into effect in January 2018, firms will be required to introduce robust processes into their organisations in order to provide effective control methods over increased market volatility. From 2018, investment firms will be required to therefore stress test their algos by running high trade volume tests using at least twice the highest volume of trading reached by a particular firm over a previous six-month period.
QuantHouse has launched its algo-trading stress testing solution as part of its QuantFEED offering. The solution enables clients to build stress testing scenarios from 2x their highest volume up to 10x peak volume.
Stephane Leroy, Business Co-Founder and Chief Revenue Officer, QuantHouse, said: “QuantHouse is dedicated to supporting clients’ regulatory needs and our new algo-trading stress testing solution is an example of our commitment to providing this support. The solution enables firms to test their production data up to 10x peak volume replaying market data events to ensure their algorithmic trading system can cope with any peaks in the market. Interxion was the ideal partner to help bring this solution to market, as they provide robust, reliable hosting and provide access to a wide and diverse group of capital markets participants.”
Bill Fenick, Strategy Director, Financial Services, Interxion, said: “We are delighted to collaborate with QuantHouse and give our clients the ability to connect with their platform rapidly and efficiently through the use of a single API. It is important for us to bring additional services that offer value to our customers wherever possible, and QuantHouse’s stress testing solution is perfect for our financial services customers looking to fulfil their MiFID II testing requirements.”
The deal will expand QuantHouse's US coverage.
Broker-dealer algorithms are evaluated, normalized and eventually rewarded for their performance.
Are trades executed in line with the intent of the orders?
Cowen estimates at least 6 basis points saved per block trade, more for less liquid securities.
eFinancialCareers reports that low-vol markets favor man over machine.