CHICAGO (HedgeWorld.com)–A new technology was released last week to give hedge funds and other traders access to an automated trading platform from Orc Software.
Founded in 1987 as a market maker in Sweden, Orc Software has come a long way in reinventing itself as a trading technology firm that can handle trades on more than 65 exchanges. As e-CBOT goes live later this month, Orc users will have automatic access to trade all Chicago Board of Trade products on the platform.
The latest release, Orc Liquidator, lets users program their own trading strategies with a programming language that allows the system to execute trades within these parameters. According to officials, the speed at which the trades can be executed cannot be gained through manual trading and lets firms profit.
The Liquidator technology is a half-buy and half-build program, according to officials, that is “standardized.” It can be brought in and used by multiple firms and, at the same time, can be programmed by a firm to offer strategy-specific trading tools.
According to its annual report, the firm is reaching into new client categories, including brokerage houses, institutional investors, hedge funds and Internet brokers.
Nils Nilsson, chief executive officer at Orc Software, said that the United States and Europe are key areas of expansion for the firm as they see big demand for new technology across traditional exchanges. It’s Mr. Nilsson’s belief that managers and exchanges will need to adopt a new world of trading that is electronic in nature and more efficient and cost effective.
“The Orc Liquidator allows clients to be first in line to take advantage of what is now being called the third generation of automated trading technology, thereby enabling them to retain their competitive advantage,” Mr. Nilsson said.
According to a CBOT official’s statement, Orc has tailored its trading applications to correspond with the LIFFE CONNECT platform, which takes the place of CBOT’s current platform orchestrated through Eurex.
The important role technology plays on the trading floor is evident worldwide. Orc officials point out that U.K. exchange-traded futures and options are traded on Euronext.liffe, which changed over to an electronic platform in 2000. Then, in the United States, CBOT, the Chicago Mercantile Exchange and the Chicago Board Options exchange run “hybrid” trading platforms that merge pit trading on the floor with electronic trading .