- UBS Quant HQ expands its ‘open architecture’ model to offer quantitative trading clients access to the latest innovation in low-latency pre-trade risk management tools
- “Riskbot®” is a US Patent Pending offering from Massachusetts-based Hyannis Port Research (“HPR”), which went live this month
- Assists quant trading clients to remain compliant with Market Access regulations for pre-trade risk management, at nanosecond1 speed
UBS today announced a partnership with Hyannis Port Research’s (“HPR”) Riskbot® offering, making it available to the clients of UBS Quant HQ, a business area focused specifically on the unique requirements of the systematic, or quantitative, trader. UBS Quant HQ combines the firm’s human insight and expertise with cutting-edge technology to provide this specialized customer segment with tailored access to the wide range of UBS global Investment Services.
HPR created “Riskbot®” in response to latency issues plaguing the market. Riskbot® utilizes a Patent Pending “market-aware-firewall” and faster trading infrastructure that provides comprehensive risk management solutions for full portfolio as well as basic pre-trade risk controls, such as those required by the Securities and Exchange Commission’s Market Access Rule (SEC Rule 15c3-5).
Matt Senecal, Head of Business Development for Electronic Trading at UBS, said: “Our open-architecture approach in Quant HQ means we are constantly looking for advanced capabilities that serve our clients’ needs – whether those capabilities reside in-house at UBS or have been developed externally. Rigorous risk management controls are as critical to our clients as they are to an efficient marketplace. We think Riskbot® will offer a powerful solution to our clients who have been seeking effective, extremely fast risk management technology.”
HPR CEO Anthony D. Amicangioli commented: “Our partnership with UBS presents an opportunity for quantitative traders to benefit from HPR's break-through technology combined with UBS's global reach and comprehensive Quant HQ offering. Our nanosecond platform, which went live earlier this month, provides a level playing field for organizations that wish to reduce trading costs and gain alpha through cutting edge technology.”
UBS Quant HQ is organized as a global joint venture between the firm’s Prime Services and Direct Execution businesses. Quant HQ combines the firm’s human insight and expertise with cutting-edge technology to provide this specialized customer segment with tailored access to the wide range of UBS global Investment Services.
Despite the fact that systematic traders represent approximately 30% to 50% of global market liquidity2, the majority of large multi-asset investment firms focus their service offering primarily toward large, fundamental long-only strategies. By creating a business area that is dedicated to the needs of quantitative traders, UBS seeks to enhance service delivery to this specialist segment, while continuing to maintain the same high standards for institutional buy side and hedge fund clients.
1 Hyannis Port Research's Riskbot appliance inspects messages traveling to and from financial markets stopping erroneous orders that could otherwise cause disruptions such as the Flash Crash. This new technology can inspect such information in the time is takes a beam of light to travel less than 500 feet.
2 Percent of liquidity varies based on geographic location, estimates taken from data published by The TABB Group, Aite Group and Celent.