Wednesday, April 22, 2015

The Growth of Swap Futures and the Box Trade: A Conversation with Eris Exchange

Mike Riddle,
COO of Eris Exchange
The passage of Dodd-Frank in 2010 required standardized derivatives to trade on open platforms and be submitted for clearing to central counterparties. As a result, many trades previously conducted over the counter moved onto exchanges backed by central counterparty clearing.

Drew Shields, our head of product management, sat down with Mike Riddle, the COO of Eris Exchange, a futures exchange that lists cash-settled interest rate swap futures, and Bill Campbell, TT’s director of fixed income products, to discuss the growth of swap futures and associated trading opportunities, specifically box trades.

Drew: Let’s take this from the top. Mike, can you talk to our readers about Eris Exchange?

Mike: Happy to. Eris Exchange is a futures exchange—a designated contract market regulated by the CFTC—that has been steadily growing since inception in 2011. We provide banks, commercials and prop traders a capital-efficient way to access interest rate swap futures. Increasingly, we are seeing prop trading groups access our market for unique trading opportunities.

Drew: Bill, as an expert in fixed income trading, can you tell our readers how they can leverage our connection to Eris using X_TRADER® and eventually our new TT platform?

Bill: X_TRADER already provides access to CBOT Treasury futures, cash markets at eSpeed and BrokerTec, along with Eris. A complete list of supported markets is on our website. Within this mix of liquidity pools, there are hundreds of ways to spread and trade fixed income contracts. Since Eris is the leading swap futures exchange, we’re planning to make that connection available very soon through our new TT platform. With our suite of automated trading tools including Autospreader®, Autotrader™ and the ADL® visual programming platform, our high-performance connections to the primary fixed income markets and our FIX and proprietary API solutions, it’s a great time to be trading fixed income products with X_TRADER and soon with the new TT.

Monday, April 20, 2015

#PreviewTT: Comprehensive Risk Management Capabilities

Last week, #PreviewTT showcased some of the risk management capabilities that are built into the TT platform.

TT couples familiar risk-management and user-administration functionality, including popular risk controls, with significant enhancements. For example:
  • Administrators can customize their own account hierarchies to apply controls at any number of levels within those hierarchies or apply them directly to users.
  • FCMs can provide firms with administrative access and give them control over the limits and settings on their sub-accounts without giving up control of aggregate risk limits.
  • Trading firms can have their own administrative access to TT, with fine-grain control over the limits and settings on their own accounts and sub-accounts, even when positions get reset.
  • Limits can be set per user as well as per account/sub-account. All limits work in conjunction with each other and must be approved before an order can be sent to the exchange.

And just like the trading application, the risk management and user administration apps are accessible via mobile devices.

Below you’ll find the content we shared last week on Twitter. It includes a video that highlights some of the key enhancements plus many product screenshots.

Starting tomorrow, we’ll talk about the TT platform architecture and benefits it delivers to our users. So keep following @Trading_Tech and #PreviewTT.

Monday, April 13, 2015

#PreviewTT: ADL®

Last week's #PreviewTT series on Twitter focused on the ways we're enhancing our award-winning visual programming platform, ADL (Algo Design Lab), in the new TT platform. We've recapped the content below.

ADL is one of our most powerful tools for algorithmic traders, with drag-and-drop building blocks that allow you to quickly create, test and deploy automated trading strategies without any manual programming. With ADL you can leverage fleeting market opportunities without the need for manual coding or expensive programmers.

The TT version of ADL will include the same powerful features as the X_TRADER® version along with many significant enhancements. Here’s a sampling:
  • You'll have the ability to drive Autospreader® from ADL. We just released this functionality to production on Friday, so if you have a TT account, you can log in now and give it a try.
  • You also can drive one algo from another through the new Algo block. Algos can be based in different locations—for example, an algo running in New York can drive an algo running in London—delivering the ultimate in flexibility and performance.
  • You can create algos using ADL or with our new high-performance API, TTSDK™.
  • Our popular Autotrader™ tool is now part of ADL, serving as both a market-making algo and a graphical interface that’s tailored to drive the algo.

All ADL-created algos will run on co-located execution servers, so performance will be faster than ever.

And just like your workspaces and everything else in TT, all of your algos and configurations are accessible wherever you go thanks to our software-as-a-service (SaaS) architecture.

Scroll down for more, and keep following us on Twitter at @Trading_Tech and #PreviewTT for more on TT this week.

Monday, April 6, 2015

#PreviewTT: The Next-Gen Autospreader®

Autospreader was the focus of our ongoing #PreviewTT series last week on Twitter.

If you followed along, you already know that the TT version of Autospreader will provide a familiar experience to existing users along with significant functionality and performance enhancement that make Autospreader even faster, more powerful and easier to use.

For example, now you can:
  • Use the new Rule Builder to differentiate your spreading strategies. You can easily create custom pre-quote, pre-hedge and post-hedge logic from scratch, or simply tweak the pre-built Autospreader features by editing them in Rule Builder.
  • Launch spreads in the compact, tabbed MD Trader® to conserve screen space.
  • See prices that reflect the true instrument value rather than the raw exchange value.
  • Experience faster-than-ever performance thanks to our newly built collocated infrastructure, which features the most advanced technology. You can even view hedge latency in real time and see how your server-based strategies are performing. By the way, we think you’ll like what you see.

And with TT, all of your workspaces and spread configurations go where you go. You can create a spread using a laptop, deploy it from your office workstation and manage it from your phone. The experience is consistent no matter where you are and what device you use.

Scroll down to see more, and follow @Trading_Tech and #PreviewTT this week to learn about the TT-version of our visual programming platform, ADL® (Algo Design Lab).