Progress offices in Australia, Hong Kong, Japan, Korea and Singapore are experiencing strong demand for the Progress Apama algorithmic trading platform, with the Asia Pacific market now representing 20 per cent of Progress's Apama business.
The critical importance of supporting local market dynamics, local connectivity, local language and local regulatory requirements of each country are uniquely enabled with the Apama 'white box' solution. The Apama platform allows financial institutions to instantly and continuously analyse, evaluate and act on complex market events in real time for algorithmic trading, risk management, market aggregation and pricing.
Sang Lee, Managing Partner, Aite Group comments: "Algorithmic trading in Asia Pacific began its development in a similar vein to Europe and North America with an initial focus on equities. Today, however, firms are rapidly adopting techniques that have taken longer to develop in the more established markets. These include the use of algorithms for foreign exchange and cross-asset class trading. As algorithmic trading in Asia continues to evolve, flexible, customisable technology that accounts for the unique characteristics of local markets is essential."
The Apama white box architecture is ideally suited to the Asia Pacific region's diverse markets. In contrast to a 'black box' architecture, which requires firms to use pre-built algorithms and market connectivity, the Apama white box approach allows users to customise the behaviour of the system based on their knowledge of the market, their different trading techniques, and their desire to differentiate themselves competitively. For example, the Apama Integration Adaptor Framework enables the adjustment of connectivity options to suit individual client needs and the Apama SmartBlocks (flexible components that come with source code and can be plugged into trading strategies) give firms control to alter existing North American or European trading techniques for their local region. In addition, the Apama platform supports the use of Asian characters in the product's graphical development tools and Business Activity Monitoring (BAM) dashboards, ensuring full localisation to take place.
Progress has added a number of new Apama clients throughout the region during the past twelve months. Last November Progress announced that leading Korean financial IT vendor, Koscom, had selected the Apama platform for algorithmic trading on the Korea Exchange (KRX). Progress and Koscom also entered into a strategic partnership whereby Koscom is developing a localised version of the Apama platform for distribution, making Apama the first commercial algorithmic trading system available in Korea.
Mark Palmer, Vice President and General Manager, Apama Products, Progress Software, comments: "In a market where regulation, connectivity, technology and language vary so vastly from one country to the next, the ability to localise trading technology is essential. The only way to truly localise algorithmic trading in Asia is by using a 'white box' approach, which allows firms to capitalise on their knowledge of local markets to create and evolve unique algorithmic trading techniques."