MarketXS, a supplier of real-time market data technology, has signed a letter of intent with Progress Apama, an algorithmic trading company. The partnership aims to deliver a standard version of Progress Apama’s algorithmic trading engine to mid-sized financial institutions, as part of MarketXS’s market data and trading infrastructure.
MarketXS and Progress Apama will also deliver a fully integrated trading service specifically designed to help clients achieve best execution as well as comply with the Markets in Financial Instruments directive (MiFID) coming into force in November 2007.
The algorithmic trading services will be offered in two versions. A limited set of features including ‘pair trading’ will be bundled into every MarketXS trading terminal. A more sophisticated version, giving access to a set of predefined algorithms which can be fine tuned by traders, is made available on an optional basis.
The Progress Apama algorithmic engine is fed with real-time market data from the MarketXS Finance Engine, and trades generated by the engine are directly routed to their destination via MarketXS ‘TradeNet’, the order routing network of MarketXS.
MarketXS says the joint service will allow mid-tier institutions to offer an algorithmic trading service to their customers, without the need to build an in-house infrastructure.