Horizon to support growth in ETFs with new version of its trading system
11 May 2015, Paris: Horizon Software announced today the release of a new version of Horizon Trading Platform for electronic trading and market making of all types of Delta One products including cash, futures, ETFs and other listed products.
According to an E&Y report, in 2014 the global ETF (Exchange Traded Funds) market reached a milestone by crossing the $2.6 trillion/year mark. Providing simple, diversified and efficient investment vehicles, ETFs are still out-growing the wider asset management industry. Trends indicate that this growth will continue in 2015 and will hit $5 trillion/year in the next three to five years. While the US market is near maturity, industry experts expect a rapid expansion in the use of ETFs in the developing markets, mainly in Asia and Latin America.
Horizon for Delta One allows for easy set-up of strategies to dynamically adjust orders, follow the market and source hedge liquidity on tens of thousands of strategies. It comes with simple, intuitive, comprehensive and value-added functionality for spot customisation, quoting and hedging.
Along with numerous and advanced built-in pre-trade risk checks, the Horizon Trading Platform improves market making and pair-trading strategies such as mean reversion and correlation / index arbitrage on baskets and Delta One derivatives. The Algo Scripting layer can use all the trading modules within the trading platform, allowing all types of trading and arbitrage strategies to be tailor-made to clients’ needs.
Sylvain Thieullent, CEO of Electronic Trading at Horizon Software, said: “The ETF market is going through rapid expansion, but competition is becoming more intense as ETF providers need to launch fewer ETFs but with better hit-rate and liquidity. So the industry is more complex than ever, and the need for a functionally-rich and sophisticated solution has never been greater.” He added: “Clearly market participants need to have the right trading tools to be able to compete. This latest addition to our product family will help industry entrants and existing issuers to enter new markets, manage new assets and build brand awareness to make their businesses successful. Horizon for Delta One delivers exactly what the markets need.”
The architecture of Horizon for Delta One embeds Horizon’s concept of Compact Unit, where all high-throughput trading components are consolidated into a single process. Compact Units are designed for businesses which engage in low-latency trading. The versatility and performance of Horizon for Delta One fulfil the needs of even the most demanding low-latency trading environments.