Investec is using Fidessaâs Pairs trading tool to enable its traders to work on complex pair orders based on M&A, historical ratios or their own in-house models. The VWAP module supports VWAP, TWAP and Random Slice order slicing mechanisms and allows traders to customise levels of aggression and slice intervals. Both these tools provide improved efficiency for the business by allowing traders to handle a greater volume of algorithmic orders and focus their time on more complex trades.
Fidessa provides a comprehensive order management system with integrated market data and low latency exchange connectivity which interfaces with Investecâs internal back-office system, facilitating real-time STP processing of all trades.
Trevor Gatfield of Investec Securities (UK), comments: âWe wanted algorithmic trading capabilities to reduce the cost of trading complex order types and guarantee best execution for our clients. Fidessa provided the best product for meeting these needs and also allowed us to leverage our existing investment in the platform. The integrated solution that Fidessa supplies also means we didnât have to glue together solutions from different vendors.â
The implementation was successfully achieved in one month as Investec needed only to extend its existing Fidessa system without changing any infrastructure or the back-office interfaces. The algorithmic modules are installed in London for users on the securities desk.
The VWAP and Pairs trading modules form part of Fidessaâs algorithmic trading suite. Other modules available include list management and wave trading for supporting basket/program trading.
Philip Slavin, head of European product marketing at Fidessa comments: âWe are delighted to extend our partnership with Investec into our algorithmic trading offerings. As with our multi-asset capabilities, we chose to extend and build our algorithmic trading services within our own architecture in order to ensure that we end up with a totally integrated, high performance, resilient and low latency solution.â
The Fidessa product suite provides integrated multi-asset trading, market data and connectivity to over 750 buy-side institutions, 170 brokers and 68 exchanges, and is used by over 85% of global, tier-one equity brokers. Fidessa serves over 9,000 users at over 260 clients around the world.