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Audentes Technology Deploys Orc Liquidator

As black box trading takes off, Audentes Technology LLC, a small Chicago-based proprietary trading firm, has deployed Orc Liquidator from Orc Software as its derivatives algorithmic trading platform. Audentes declined to comment, in a statement, Libby Christy, operations manager for Audentes Technology, said the firm was impressed by Orc Liquidator's fast time-to-market, low latency, and connectivity to a large number of markets."

As black box trading takes off, Audentes Technology LLC, a small Chicago-based proprietary trading firm, has deployed Orc Liquidator from Orc Software as its derivatives algorithmic trading platform. Audentes declined to comment, but in a statement, Libby Christy, operations manager for Audentes Technology, said the firm was impressed by Orc Liquidator's fast time-to-market, low latency, and connectivity to a large number of markets."Without commenting specifically on Audentes, Martin Koopman, North American President for Orc Software in an interview, says the firm is like other entrepreneurial proprietary and options. trading shops that turn to Orc Liquidator for advanced derivatives trading. "Our customers use us for finding arbitrage opportunities between one market and another or doing a spread trade between futures and options on the CME," suggests Koopman.

Orc Liquidator is a black box trading platform for advanced derivatives trading that is targeted at proprietary trading desks at investment banks, trading firms and hedge funds. The system allows for the deployment custom trading strategies a processing speed of 20,000 orders per second with sub-millisecond latency, said the release. "It's super low latency, they get in and out of the market very quickly, they're not holding positions longer than a few hours and sometimes a few seconds," says Koopman.

Orc Liquidator specializes in trading listed futures and options. "Our customers are doing equity options trades on the six options markets including ISE and CBOE, and they they're doing interest rate futures on CME and energy futures are big on ICE and NYMEX," says Koopman.

Traditionally Orc sells the client its software and then they buy the server and a client machine, and they run it all locally in their building. The second way is a fully hosted solution where Orc owns the servers, manages the connectivity into the exchange and handles all the support. "The only thing the customer has to do is write the actual strategies," says Koopman. The customer inputs the strategies into the client machines and the server runs the trading strategies in the market.

Over the past six months, investment banks and proprietary trading firms are become so obsessed with low-latency that one trend is to collocate servers at the exchange building. Many firms are using Chicago-based Equinex, a colocation service, to host their servers in the same building as the CME (Globex) matching engine, and then they plug into a super low latency pipe, says Koopman. Equinex has a network called L-net that goes only 50 feet from the server at CME and then there's a big L-net pipe that goes 50 feet to the L-net facility, he explains.

Orc Liquidator competes against Trading Technologies, which specializes in futures only and GL Trade, which is more focused on broker solutions whereas Orc caters to proprietary traders, according to Koopman.

However, Orc's statistics show that about 80 percent of the spend on futures and options black-box platforms is the internal at the moment." Whenever we go into sell, we're going up against internal IT department, which is fairly sophisticated and like to build it themselves," he says.As black box trading takes off, Audentes Technology LLC, a small Chicago-based proprietary trading firm, has deployed Orc Liquidator from Orc Software as its derivatives algorithmic trading platform. Audentes declined to comment, in a statement, Libby Christy, operations manager for Audentes Technology, said the firm was impressed by Orc Liquidator's fast time-to-market, low latency, and connectivity to a large number of markets." Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in the capital markets. As an industry expert, Ivy has reported on a myriad ... View Full Bio

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