February 22, 2010

Integral Development Corporation announced FX Inside Alpha, an on-demand solution for firms to launch algorithmic trading strategies for foreign exchange by collocating and running these models in Integral's data center.

The on-demand service enables firms to build their FX algorithms in an integrated development environment using Microsoft compatible languages through Integral FX Inside, an EMS. Firms can collocate their models in Integral's data center, where they gain low-latency access to Integral's FX Grid of 40 liquidity sources, as well as recorded data from the same trading system for back testing and live trading.

"We've decided to combine many of the solutions we've been offering up in a single solution, FX Inside Alpha, an environment where they can build, test their algos and run their algo in a live trading, and we've combined with historical data sets," explained Harpal Sandhu, CEO at Integral's headquarters in Mountain View, Calif., in an interview with Wall Street & Technology. They "will have a lot of the raw data they need to research and build their algorithms," conveyed Sandhu. He said the solution is the only one of its kind and the only complete solution to allow an institution who has an innovative idea to trade the forex markets, to use the idea and basically rent the services from Integral rather than build their own infrastructure.

Cogence Capital, a proprietary FX algorithmic trading firm, is among the first clients to sign up for FX Inside Alpha and to develop its algorithms from scratch through a new integrated development environment that is part of FX Inside Professional, Integral's execution management system (EMS). "We have availed ourselves of the option of all the components and the functionality that this product is offering," said Vikas Srivastava, CEO, Cogence Capital, in the interview with WS&T. Cogence< is using "everything from trading on the FX Inside liquidity to having our models hosted in Integral's data center, to using FX Inside's algorithmic trading strategy development environment as well as using the data that is produced by the trading platform," he explained.

Srivastava said his firm had looked at various options of building all the pieces from other technology or buying some pieces and building others, but was really attracted to this solution since "most of the elements or components that you need to launch an algo trading business are available in one place — and not just available—but are integrated in a very natural way."