Horizon for Exchanges Solution

Overview

 The Horizon Solution for Stock Exchanges

Significant increase in derivatives trading, income from trading on the rise, shift in business strategies, stronger regulatory and political frameworks: Exchanges have adopted more technology and software services in the past years than ever before. Horizon ofers highly performing pricing and trading solutions dedicated to banks, Exchanges and brokers. Horizon is unique in bringing advanced algorithmic capabilities within a fully customisable trading solution that provides advanced trading technology to 90 clients and connectivity to over 150 Exchanges worldwide. Horizon benefits from a proven, long lasting experience in supporting various Stock Exchanges. Historically, Horizon has designed its pricing and trading platform through strategic partnerships with major Exchanges, where both technology and services were customised to serve specific requirements such as real-time pricing, especially options pricing solutions. Horizon ofers the hybrid approach of providing industry-standard trading and pricing infrastructure, combined with customisation capability

European Client Use Case 

Our client had developed an in-house pricing and settlement system. The main focus was to replace this system with a highly eficient, optimised and extensible exchange pricing system which will support the current and future exchange derivatives market model, with minimal infrastructure footprint. The requirements were to allow the electronic trading of derivative contracts on diferent kinds of underlying (stocks, indices, commodities, interest rates, etc.). Horizon responded to this challenge by providing the matching engine with the authorized trading range for each derivatives instruments defined around a theoretical price calculated real-time by Horizon. Horizon will typically calculate this theoretical price by taking into account market data (underlying, derivatives) as well as and reference and configuration data (volatility, rates, dividends) as provided by the client or interpolated from real time market data.The Horizon platform then output price limits and price alerts, and additionally settlement prices for back-ofice (clearing) purpose. To cover variations in the type of data provided to Horizon, a tactical end-user computation setup was integrated and is currently being used by the client of this use case.

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Complex Integration Excellence and Managed Services

 The company has always invested heavily in R&D to develop the most cutting-edge technology for the capital markets industry. Horizon’s platform can be used out-ofthe-box and is based on a flexible architecture that enables software customisation to align with client specific requirements and regulations. Horizon Software provides hosting and management services, so our clients continue to evaluate their operating models to deliver the highest quality of service and control, but with a more sustainable cost base. Horizon ofers an opportunity to enhance delivery capabilities whilst continuing to reduce fixed cost base by outsourcing trading functions. On top of outsourcing, Horizon has a strong experience in integrating external systems into its software. All non-trading related services can be externalised and imported in Horizon thanks to our scripting framework. In the example below, we successfully integrated an external pricing model to our system to fit requirements of a client

Key features

Top benefits

  • Calculation of Theoretical Prices & Greeks
  • Calculation of Volatilities
    -Settlement prices calculation
    -Price consistency checks
  • Quoting of 70,000 instruments
  • Futures and Options
  • Over 300 million messages per day sent from Horizon Platform
  • 40 users
  • Real-time interpolation of market data
  • Fully automated logic to price illiquid products
  • Pricing and anti arbitrage checks
  • Settlement prices
  • Integration and provision of a scripting environment to easily build custom logic while keeping code confidential
  • Cross-asset single platform
  • Scalability
  • Highest level of security