Traders Magazine: Algo Development 2.0 Looks to Open Source, Cloud and Big Data

By Jen Fagenson

July 12, 2018

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Ivy Schmerken covers the Algorithmic Trading Panel at Intelligent Trading Technology’s Summit hosted by A-Team Group last month in New York.

On the panel experts discussed market and technology trends that are impacting algorithmic development including regulations, access to cloud computing for backtesting, demand for transparency, and compliance with global testing standards.

With the shift from active to passive strategies, performance has become critical for active fund managers seeking to beat passive index funds.

“People are charging a lot and not meeting their benchmarks and that creates a lot of focus on performance,” said Peter Maragos, CEO of Dash, which provides algorithmic trading tools for equities and listed options.

Citing the battle over active vs. passive management and the problem of underperformance, Maragos said these trends are focusing attention on trading costs and best execution.

Regulatory events like Europe’s MiFID II with the unbundling of research vs. execution, have shined a light on best execution, which is going to impact algo development.

“People want more visibility, more control and more measurement and more analytics to really help them to squeeze all the juice out of the market structure,” said Maragos.

Referring to US equity and options markets – where there are 16 options exchanges, Maragos said, these are complex market structures. Instead of becoming an expert, institutions want to rely on high-performing tools to help them access liquidity and obtain the right price.

To read the full article, click here.