Orc Offers Enhanced CBOE Exchange Protocol

Orc, a leading provider of technology and services for the global financial industry, is pleased to announce its support of CBOE’s updated CMi 2.0 exchange protocol. Clients utilizing the Orc Trading products, including Orc Liquidator, Orc Market Maker and Orc Trader with Orc’s CBOE gateway will experience significantly improved performance for orders and trades.

Orc has dramatically improved the performance of its CBOE market gateway, specifically optimized for mass quoting with Orc Market Maker and Orc Liquidator. With a “tuned” CBOE gateway and Orc Market Maker’s fast and accurate market making logic, Orc’s solutions for market making has reduced end-to-end latency by over 90% for Orc clients trading CBOE markets. Clients are among the fastest in the market in quoting options on the CBOE. This advanced trading logic also gives Orc’s clients robust hedging logic to maximize profit.

CBOE offers the VIX Index, the VIX Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term S&P 500 is trading at $16.35.

Mark Harmon, Trader at Sallerson-Troob, comments, “I trade ETFs on CBOE and am able to achieve my desired quote speed and performance with the Orc Market Maker product. Additionally, Orc has made it possible to compete at a high level in the market making space by making it easy to handle my volatility skew, by automating the relationship between products and by automating hedging and value adjustments after a quote fill. Market Maker also allows me to respond to complex and outright auctions and meet the exchange quoting requirements.”

“CBOE’s new CMi 2.0 interface provides lower latency and better performance for CBOE participants,” Gerald O’Connell, CBOE Executive Vice President and Chief Information Officer, said, “and we are pleased that Orc supports this upgrade.”

Jesper Alfredsson, VP of Product Management, Orc, comments, “Orc has been developing market making technology for over 20 years and we are committed to bringing the fastest, smartest and most efficient systems to the markets. We wanted to further the success our clients have experienced by optimizing Orc Market Maker to perform faster on CBOE’s markets and will continue to look at ways we can help our clients achieve profitable outcomes.”

CBOE is the worlds largest options exchange, it reported its July volumes data as; July average daily volume (ADV) was 4.15 million contracts, a nine-percent decrease from July 2011 ADV of 4.57 million contracts and an almost ten-percent decrease from June 2012 ADV of 4.61 million contracts. Year to date through July, combined CBOE and C2 volume is about even with the same period one year ago.

Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term Magnates team wrote a detailed report on FX Options, available in the Q2 quarterly report.