Horizon Announces Key Product Enhancements for MiFID II Stress Testing
10 September 2019, Paris & Hong Kong: Horizon Software (Horizon), the world’s leading provider of electronic trading solutions and algorithmic technology, has announced a new release of its replayer product, which allows financial institutions to comply with MiFID II stress testing requirements. The product’s enhancements will enable clients to replay and synchronize market and pricing data twice as fast as previously and stress-test automated trading strategies, including market making engines and hedged volatility orders, as well as GUI components. The release replays historical events in real time to accurately simulate trading infrastructure and market conditions.
MiFID II regulations state that investment firms “will be required to demonstrate, as part of an annual self-assessment stress-testing process, the capacity and resilience of their trading systems.” The new iteration of the Horizon replayer both meets and exceeds this requirement, bringing high-speed, highly reliable monitoring, recording and reporting on investment decisions and execution and, most importantly, opens new ways to assess risk and performance not only on the whole trading architecture but also on pricing and algorithmic trading processes.
Clients will see significant benefits from the enhanced, automated stress testing provided by Horizon; an additional benefit is the ability to deploy an embedded recorder which can be activated and deactivated for selected processes on the fly. The new recorder’s one-time setup and flexible, customisable design give users full freedom to replay, configure and define automated scenarios on derivative products and, uniquely for the market, the capacity to record theoretical derivatives pricing data.
Vincent Dumontoy, Global Head of Client Solutions and Services at Horizon, commented: “Regulation is an ever-increasing hot-button issue and something we naturally take very seriously as one of our clients’ top concerns.” He continued: “We are therefore very pleased to be launching these new and unique enhancements and ensuring our clients are not only compliant with the latest requirements, but also have the most innovative technology available. The new replayer product is true to form with our core philosophy of ‘Trade Your Way’ not only by meeting the market’s needs, but also giving our clients easy configurability and intuitive setup.”