The National Stock Exchange's wholly-owned subsidiary NSE.IT today said it has launched two software products, which help brokers in algorithmic trading, in partnership with First Future Software.
"These two unique software products, AlgoStudio and StrategyStudio, help brokers in algorithmic trading with extensive customisation capabilities and sophisticated strategy development tools," NSE.IT's CEO Ramesh Padmanabhan told reporters here.
Algorithmic trading utilises advanced mathematical models for making transaction decisions like optimal time for an order to be placed, price or quantity of the order. In many cases it helps in initiating the order without human intervention.
AlgoStudio is an ultra low-latency, event-based automated trading system that comes together with a trading application framework for building and deploying sophisticated proprietary algorithmic trading models to achieve the best execution price improvement by exploiting aggressive and opportunistic liquidity-seeking algorithms, he said.
This will help market participants to reduce signaling risk and market impact and to access liquidity at the optimal prices. The platform offers innovative execution logic and extensive customisation capabilities, Padmanabhan said.
The Algo trading in India will see substantial growth in the next 4-5-years, he said.
According to First Futures Solution's Managing Director Yann Senecheau, StrategyStudio is an application for designing, analysing, optimising and executing fully-automated mechanical trading systems.
It uses artificial intelligence for its orientation as an expert system, leveraging the user's trading experience in terms of targets and approaches for better trading strategy optimisation results, Senecheau said.
Less than two years ago, the Securities and Exchange Board of India allowed brokers to offer direct market access (DMA) and algorithmic trading facilities to institutional clients with the intention of cutting transaction time and for speedy trade execution.