Options, a managed service and IT infrastructure provider to the global capital markets industry, has launched a partnership with software and appliance vendor, TraderServe, according to an Options statement.
The new partnership between the two companies will help see Options become a managed service and hosting partner for TraderServe’s AlgoGuard. The joint accord is important for Options as it will help the group tap into one of the leading algo providers for the financial services industry.
AlgoGuard is TraderServe’s simulated exchange ecosystem for trading algorithms – the utility falls under the mantle of European Securities and Markets Authority’s (ESMA) final submission on regulatory technical standards for the financial instrument directive, MiFID II, which is slated to come into law in early 2017.
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TraderServe’s AlgoGuard technology helps emulates live market environments, which includes simulated stress conditions in an attempt to test, streamline, and correct algorithms against the fundamental stimuli that impact market disorder events, i.e. a flash crash, black swan event, etc.
According to TraderServe’s Technical Director, Nick Idelson, in a recent statement on the partnership, “AlgoGuard offers a pass/fail testing solution against predetermined indicators of disorderly market behaviour and allows for the testing of algorithms that trade multiple markets. In the wake of ESMA’s latest recommendations TraderServe are delighted to be bringing this solution to the market alongside such an experienced managed service provider as Options.”
“TraderServe’s AlgoGuard platform not only provides clients with a tailored solution on an individual investment firm basis, it also provides a realistic non-live testing environment that doesn’t disclose the algorithms being tested. Given ESMA’s recommendations and the fast-approaching deadline facing investment firms, the joint offering from TraderServe and Options will ensure these firms achieve MiFID II compliance in a timely and efficient manner,” added Options CTO, John Bryant, in an accompanying statement.
Last month, Colt Technology Services added TraderServe to its PrizmNet utility, a financial services extranet that bridges providers of financial content to Capital Markets firms. TraderServe was the latest addition to a group of companies already utilizing the service that includes Aquis Exchange, JPX, Nasdaq and NLX, among others.