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Fidessa Explores Rise Of Futures Algos

Date 05/02/2014

Fidessa group plc (LSE: FDSA) today announced it has secured the global distribution rights to new research from TABB Group, “Algos in Futures Markets: Shifting into High Gear.” The report examines the rise of the futures algo – touring the existing landscape and highlighting trends – against the backdrop of the increasing use of automated trading strategies across derivatives markets.

Algos in Futures Markets: Shifting into High Gear identifies the factors driving this increased usage, and details the range of brokerage offerings in the market, exploring the rationale behind existing algorithms offered by futures commission merchants (FCMs) and independents. It also considers the impact of regulation, particularly the CFTC’s concept release on automated trading, which addresses the development and testing of algorithms. Finally, the paper draws on existing trends to cast a speculative eye to the “algos of the future.”

Matt Simon, Senior Analyst at TABB Group and author of the report, said: “The world of futures algorithms is beginning to mature. Current users have demands to support existing practices and are looking to further build out their advanced execution strategies. At the same time, a number of large buy-side institutions, including those who have traditionally shied away from using futures algos, are showing interest.”

Yuriy Shterk, Head of Derivatives Product Management for Fidessa Americas, commented: “Futures markets offer a rich environment for algos due to product diversity, margin efficiencies, and cross-market appeal. The past five to six years have seen a real integration of algos into the futures markets, and the message we are now consistently getting from our clients is a desire for greater transparency, coverage and speed. As providers continue to build out their electronic offerings, the development and use of futures algos is shifting into high gear.”

Algos in Futures Markets: Shifting into High Gear is available through the Fidessa website or by contacting info@fidessa.com