Predator Nostro
Predator Nostro efficiently assists traders with qualities like top performance regarding speed and treated volume, various automates taking care of the order routing routine and thus freeing up time for the trader to fine tune his trading strategies. Instant access to fragmented liquidity and reliable tools allow the trader to automate and adapt his activity to changing market conditions.
Market Data Integration
Bid/ask from over 200 electronic exchanges worldwide.
Traders can check all the prices for their order book and the best quotes for a single security from different market places, at a glance, on one single working tool.
The importance of market depth:
- Aggregate a fragmented market
- Reduce market impact
- Condition for ‘best execution’
- Guide for best suited execution strategy
The benchmark for traders, best execution, gets more and more complicated to achieve in the post-MiFID (or RegNMS) environment.
Today, traders must be able to deal with multiple price types from multiple sources to trade multiple instruments.
Predator integrates real-time data from the connected markets with datafeeds from various vendors (Bloomberg, Thomson-Reuters, SIX Financial Information, etc.) used for trading information like market overview, market depth, news tickers, etc.
Internal Matching Engine
The Internal Matching Engine is Predator’s specific feature acting like a stock exchange and therefore allowing to match buy and sell orders from clients and/or inhouse (Nostro) instead of sending each order to an electronic exchange.
The Internal Matching Engine helps clients by providing more liquidity and lower execution costs. It helps traders maximize large order execution, reduce market impact and obtain price improvement by using the internal liquidity.
The trader has the option to manually cross internal orders or to send them to the automate matching engine. Partial internal order cross is also possible, remaining order size being sent to an external dark pool, exchange or broker.
Algorithmic Trading
Algorithmic Trading allows entering orders with computer algorithms deciding on aspects of the orders such as the timing, price, or quantity of the order, or in many cases initiating the order without human intervention. Algorithmic Trading is widely used today, for example to divide large trades into several smaller trades in order to minimize market impact, and risk. Sell side traders, such as market makers and some hedge funds provide liquidity to the market, generating and executing orders automatically. In this “high frequency trading” (HFT), computers make the decision to initiate orders based on information that is received electronically, according to strategies defined by human traders.
PREDATOR is unique in providing clients with 3 basic options for using algorithms:
- Pre-installed algos provided by Teleinvest
- Broker defined algos
- Developing and inserting individual algos
Straight Through Processing
The STP represents the host interface to non-Teleinvest applications, suited for straight through processing of orders and their execution information.
Its goal is to completely automate the trading process without the need for re-typing the orders. The STP allows the banks to load into the Predator trading platform information like custom securities catalogue, positions, valuation prices, corporate actions etc.
The STP has the advantage to:
- Reduce the operational risk by eliminating the manual interventions
- Minimise the time for trade settlement
- Increase the quality of the settlement data
- Minimise the operational costs
Currently the STP module can use several protocols as the Teleinvest STP protocol, FIX and FIXML protocols.
Features
Ratio Trading
The Ratio trading (pair trading; long/short trading) module is an internal developed algorithm and trading automate for selling a portfolio of instruments and in parallel buying another group or type of instruments completly automate while trying to minimise the risk of unbalanced positions.
It allows traders and fund managers to implement sophisticated market neutral strategies. Developed on the Teleinvest V.I.P. base, the Ratio Trading module automatically sells one instrument or a basket of instruments while buying other instruments only when predefined parameters are fulfilled and the desired liquidity exists on the market.
The Ratio Trading module may also be used in arbitrage strategies in order to take some profit from the spreads which can appear between different markets where the same instrument is traded.
Arbitrage
Special engine, alowing to track price differences in different markets for the same security and to automatically send orders to these markets.
With a real-time access to two or more markets it becomes possible to automatically send orders on some instruments quoted on two or more markets in order to buy on one market and sell on another one the same instrument based on the spread.
It is possible to calculate the spread and automatically send orders on the respective markets when the spread is above a certain limit in real-time using the Predator VIP module.
Predator gives the trader the opportunity to transform in their advantage the spreads using strategies like:
- Multi-Market spreads
- Inter-product spreads (e.g. equities – derivative, derivative – derivative, equities – structured products etc.)
- Other user defined strategies.
FIX Engine
The FIX engine enables the client to connect to all FIX based networks or markets, extending the connectivity range for buy-side organisation or the order collection range for sell-side comunity.
The software server is handling all types of FIX protocols from FIX 4.0 to FIX 5 and converts them to the Predator IFIS language. The FIX server is developed in order to handle extreme message throughput with minimum latency.
Reports & Audit
The trader can obtain the whole history of an order or trade, from the moment it was entered in the platform until it is executed or deleted. Predator’s Report & Audit are valuable tools for compliance and control purposes.
Using the Audit module, any authorized person (the head trader, fund manager or auditor) can request a full or selective audit-trail on all or any data, for example : price & time stamp on order reception, order placing, changes, reception of execution etc. Definition of selection criteria is very simple.
Reporting capabilities are available to both users at the client and users within trading department. The data available for reporting is limited based on the viewing permissions assigned to the user. Predator provides the option to print paper tickets for each order, together with its matching fills, to send reports by email.
Predator provides a summary report for a specified date, for all orders placed and for all executions. The report is available to print on demand. At least one year of data is available on-line for viewing and reporting.
Predator provides a flexible reporting tool which allows users to run order, fill or position reports based on user defined templates. The reporting tool allows the user to run reports based on any combination of the following: date range, client(s), account(s), exchange(s), product(s), trader(s), status(es), client reference(s), price range etc.
Risk Management
One way of managing risk is knowing your position as regards to unexecuted orders on the market or long/short positions by client, trader, etc. Predator allows the real-time supervision of positions and setting individual limits or alarms.
Key features of Predator’s Risk Management module:
- Adapted for Nostro (proprietary) or Client activity
- Allows the introduction of limits for the traders and for the « books » of instruments
- Real-time limit control for Real & Virtual Positions
- Coupled to the Predator V.I.P. spreadsheet to allow real-time calculations for risk evaluation
- Flexible concept built on risk management formulas
Position Keeping
Special engine, alowing to track price differences in different markets for the same security and to automatically send orders to these markets.
With a real-time access to two or more markets it becomes possible to automatically send orders on some instruments quoted on two or more markets in order to buy on one market and sell on another one the same instrument based on the spread.
It is possible using the Predator VIP module to calculate in real-time the spread and automatically send orders on the respective markets when the spread is above a certain limit.
Predator gives the trader the opportunity to transform in their advantage the spreads using strategies like:
Multi-Market spreads
Inter-product spreads (e.g. equities – derivative, derivative – derivative, equities – structured products etc.)
Other user defined strategies.
Market Making
Predator’s Market Making module allows to feed any given electronic market with price quotes (bid/ask), either automatically, based on precise formulas from selected data sources, or manually by the trader.
Predator offers fully integrated tools for:
Market Making on Bonds
Market Making on Equities
Market Making on Warrants and Options
Market Making on Investment Funds.