Trading Technology

12:08 PM
Connect Directly
Facebook
Google+
Twitter
RSS
E-Mail
50%
50%

Chinese Investment Bank Builds Algo Strategies for Retail Customers, Taps Progress Apama Platform

Citing demand from high-net worth retail customers, China Merchant Securities is providing eight common strategies for equities and equity derivatives, and plans to expand the offering to institutional clients in the future.

Demand for algorithmic trading is heating up in China where one leading investment bank, China Merchants Securities has licensed software from Progress Software, according to today’s announcement. But the message is clear — in China’s rapidly developing securities markets, the interest in algo trading is growing and appears to be emerging on the retail side. This is in contrast with trends in U.S., where algorithmic-trading first popped up on proprietary trading desks at the major investment banks, before strategies were offered to institutional clients.

According to Progress Apama, China Merchants Securities is responding to interest from its high net worth retail customers in algorithmic trading by supplying them with both ready-made and client specific algorithmic strategies.

China Merchants went into production with Apama’s algo trading platform last June in Shenzhen. Retail investors currently have access to eight common strategies for equities and equity derivatives including volume-weighted average price (VWAP). Plans are to expand the platform to other asset classes including financial index futures and commodities futures.

“Algorithmic trading in China as been growing but few brokerage firms can offer clients a customizable, scalable and robust algorithmic trading platform with ultra-low latency,” commented GuangYan Wu, general manager of Individual Investor Dept. from China Merchants Securities. Wu said his firm’s strategy is to offer value added services to customers and grow its retail business. It chose to build its algorithmic platform on top of the Apama Progress platform.

According to Richard Bentley, VP of capital markets at Progress, China Merchants chose Apama over more than 10 competitors because the tech provider demonstrated to its IT team that it had the most customizable and scalable algorithmic platform. Apama’s team worked closely with the firm to build “highly targeted trading strategies specific to the Chinese market,” stated Bentley.

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

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
ischmerken
50%
50%
ischmerken,
User Rank: Apprentice
1/31/2013 | 6:24:09 PM
re: Chinese Investment Bank Builds Algo Strategies for Retail Customers, Taps Progress Apama Platform
-Algo trading has also taken off with retail traders in foreign exchange.
Ivy Schmerken
50%
50%
Ivy Schmerken,
User Rank: Apprentice
1/31/2013 | 6:24:09 PM
re: Chinese Investment Bank Builds Algo Strategies for Retail Customers, Taps Progress Apama Platform
-Algo trading has also taken off with retail traders in foreign exchange.
ischmerken
50%
50%
ischmerken,
User Rank: Apprentice
1/31/2013 | 6:15:21 PM
re: Chinese Investment Bank Builds Algo Strategies for Retail Customers, Taps Progress Apama Platform
Retail investors in Korea are also entering orders into algorithms.
Ivy Schmerken
50%
50%
Ivy Schmerken,
User Rank: Apprentice
1/31/2013 | 6:15:21 PM
re: Chinese Investment Bank Builds Algo Strategies for Retail Customers, Taps Progress Apama Platform
Retail investors in Korea are also entering orders into algorithms.
JLOPEZ2741
50%
50%
JLOPEZ2741,
User Rank: Apprentice
1/31/2013 | 11:26:37 AM
re: Chinese Investment Bank Builds Algo Strategies for Retail Customers, Taps Progress Apama Platform
I agree. Developments made thru apps customization or strategy parametrization is the way under Apama-s unbrella always. I love this game!
slanng
50%
50%
slanng,
User Rank: Apprentice
1/30/2013 | 7:13:57 PM
re: Chinese Investment Bank Builds Algo Strategies for Retail Customers, Taps Progress Apama Platform
One thing is for sure G the future is automated, also in retail.

1000-s trading same algo strategy isnGt operational.
Developing algo strategies for 100.000 + -clients isnGt operational.

I think only solution to move ahead with automated trading in retail, is to move the "development" to the trader !

Soren Lanng
TickCOM
Register for Wall Street & Technology Newsletters
White Papers
Current Issue
Wall Street & Technology - Elite 8, October 2014
The in-depth profiles of this year's Elite 8 honorees focus on leadership, talent recruitment, big data, analytics, mobile, and more.
Video
Exclusive: Inside the GETCO Execution Services Trading Floor
Exclusive: Inside the GETCO Execution Services Trading Floor
Advanced Trading takes you on an exclusive tour of the New York trading floor of GETCO Execution Services, the solutions arm of GETCO.