September 02, 2009

In an effort to build out the commodities trading capabilities available via the Progress Apama platform, Progress Software announced new connectivity to the IntercontinentalExchange (ICE).

The ICE’s futures exchanges are available for market data processing and order routing on the Progress Apama platform, including ICE Futures Europe, ICE Futures U.S., ICE Futures Canada plus the ICE/European Climate Exchange futures contracts.

“In all asset classes we’ve seen the emergence of electronic trading and now the commodities markets are coming down the same curve,” says Dan Hubscher, principal product marketing manager for capital markets at Apama. “A lot of people are beginning to consider algorithmic or programmatic trading for commodities and the more destinations we can make available to them the more attractive the proposition becomes.”

He adds, “This connectivity to ICE is part of a larger Apama initiative focused on commodities…We have hired expertise this year in both the U.S. and Europe and there are a number of things we’ve done in this market to bring more traders into commodities.”

The Apama connectivity relies on ICE’s latest low-latency multicast data feed (impact) so traders can incorporate real-time market data into their strategies powered by Apama for customized automated trading.

“But the commodities focus is not just about destinations and connectivity—both algorithmic trading and risk management capabilities are offered in the platform,” notes Hubscher. “We call it PTRM, or programmatic trading and risk management, which is not only for algorithmic strategies for alpha seeking investments and execution but also for risk management as well.”

He points to key areas such as explicit limit checking and enforcement as well as calculation of position and management exposure as examples of risk management functionalities.