The offering is designed to address the increasing challenges and costs of conducting algo trading in Europe since MiFID implementation, including acquiring and maintaining the required infrastructure and systems, as well as accessing disparate pools of liquidity for a single instrument.
Liquidity fragmentation requires algo engines to search across multiple venues and process vast amounts of data instantaneously, to identify best execution opportunities and fill large orders. The technical and operational challenges are expected to grow as new venues are launched.
The new combined solution offers the convenience, functionality and performance of Cicada's MarketPrizm algo trading infrastructure and Quod Financial's Advanced Execution Platform, coupled with Quod's Advanced Smart Order Routing (ASOR) and Algo Trading modules.
Specifically, the solution comprises these MarketPrizm integrated technology and services components: DataPrizm to acquire and filter all required market data; PrizmBook to aggregate orders for an instrument across multiple trading venues into a single composite; and TradingPrizm, powered by Quod Financial, to provide high-speed execution of client algorithms and Smart Order Routing.
The solution has flexible options for deployment, including a unique hosted and managed service, in which the client can take advantage of fast access through proximity to the venue and avoid the overhead and cost of directly managing the data, systems and network.
The alliance offers distinct advantages for clients by leveraging the proven technologies of two innovative industry leaders. Cicada is a long-established provider of real-time and reference data technology for major exchanges, financial institutions and data vendors. With this technology foundation, Cicada's MarketPrizm provides the speed, reliability and the functionality to optimise algo trading and help control the rising cost of conducting trading in today's fragmented markets.
Built on a low latency, high performance infrastructure, Quod ASOR's combination of algorithms and trading-specific Complex Event Processing
(CEP) dynamically adjusts the execution pattern of an order against the client's individual best execution criteria. Quod ASOR is live and proven with leading international brokers, and is one of a number of advanced execution modules built upon the Quod Financial Advanced Execution platform.
"Our underlying technologies have enabled us to create an industry first, that can not only route to transparent liquidity, but locate and even predict dark liquidity. As the markets become more fragmented and liquidity increasingly resides in dark pools, this is an essential tool for modern trading no matter which side of the market you sit," said Ali Pichvai, CEO and co-founder of Quod Financial. "Integrating this functionality with Cicada's MarketPrizm provides traders with a powerful, cost-effective option for dealing with all aspects of algo trading."
"This alliance offers algo traders a complete solution for the entire algo trading cycle: from the infrastructure to gather and process the data needed to drive their algorithms, to a complete view of the market across venues, to cost-effective hosting and proximity options, and through to order routing and execution, added Gregory Smith, Cicada's CEO. "We look forward to enabling clients' algo trading strategies through this uniquely comprehensive solution."
In addition to the hosted, managed deployment option, clients can also obtain their own rack space at the venue and take advantage of support and monitoring services, or the solution can be deployed at another location or data centre selected by the client.