Download the TruMarket 2.0 Financial Edition Datasheet (PDF - 31k)
Overview : TruMarket 2.0 Financial EditionExchanges are Evolving
The passing of the Commodity Futures Modernization Act of 2000 and repeal of the Shad-Johnson accord prohibiting the trading of single stock futures have dramatically changed the tone of business among financial exchanges.
The barriers to entry for new electronic futures and derivatives exchanges are now significantly reduced, with approval coming in as little as 90 days. Requirements for launching a new product are even more lenient, which means the markets can expect a proliferation of new products and derivatives over the coming months.
As the market share of existing floor-based exchanges shifts toward the electronic and OTC exchanges, the traditional markets are launching their own electronic trading initiatives.
This surge in activity has fueled demand for more sophisticated, easier to deploy, and more powerful exchange technology demand that has not been met by existing offerings until now.
New Roles for FCMs and Other Intermediaries
The exchanges are not the only ones facing new opportunities in this dynamic market. FCMs (Futures Commissions Merchants) and other brokers are finding that they can use electronic trading technology to better serve their customers.
The ability to internalize order flow and support it with sophisticated risk management will enable FCMs and brokers with capabilities that have thus far been out of their reach.
By allowing their customers direct access to an in-house matching engine, FCMs and brokers can dramatically increase the volume and efficiency of the trades they handle, while still allowing orders to be routed to an exchange floor if necessary. Multi-parameter risk management, based on a variety of customer-specific or market-wide attributes, enables intermediaries to minimize their own exposure as well as the exposure of their customers. Cutting-edge technologies such as TruMarket 2.0 Financial Edition permit risk analysis on a pre-execution basis - without sacrificing critical processing speed.
OTC Markets Digitize
The OTC (Over-the-Counter) markets for off-exchange instruments has typically been dominated by voice brokers. As consortiums are created and OTC trading becomes more formalized, an electronic trading system becomes critical. With fewer regulatory and compliance requirements restraining access, Internet-enabled technology offers strong advantages in its ease of access, front-end customization, and speed of connectivity.
"Product-centric" Existing Platforms are "Product-limited"
Revisions of existing technology platforms are essentially newer versions of the same old thing. A system that was designed for trading bonds cannot easily be adapted for trading Euro futures, nor can it deployed for trading butterfly spreads on pork bellies.
Traditional exchange technology vendors have focused on the needs of traditional exchanges: speed and reliability for known instruments and connectivity for known users via proprietary interfaces.
New Products Defy Traditional Capabilities
As new markets emerge and existing markets mature, the convergence of physical and financial products will require marketplaces that are equipped to handle complex trades efficiently. Likewise, increased retail-user access to the financial markets and the increase in popularity in "e-mini" products means that new products will come to market faster than ever.
It's not as far away as you might thinků
The next generation of electronic trading requires capabilities far beyond those of existing solution; capabilities that allow for new products to be launched on-the-fly, complex relationships between products to be defined, and lightning-fast connectivity, rock-solid reliability, and high-speed performance.
Risk Management involves more than just "price & quantity"
As more users are able to participate and products become more numerous, electronic marketplaces will require risk management capabilities as complex as the trading they support. Existing risk management, which involves little more than monitoring users' holdings, will give way to the next-generation of multi-attribute risk management, capable of evaluating trades on a pre- or post-execution basis, monitoring the effects of market conditions, and profiling users' activity based on historical transaction information.
TruMarket 2.0 Financial Edition was designed as a high-performance, customizable matching engine and risk management system for deployment in the demanding high-availability environments of financial exchanges. TruMarket supports fast and customized deployment of new products on-the-fly and definition of complex "rich" product interactions.
TruMarket provides electronic regulated exchanges, OTC exchanges, and FCMs and Brokers a flexible technology platform that will enable them to effectively harness their existing liquidity more efficiently, and capture new liquidity more easily.