Celoxica debuts HFT futures trading tools
UK technology company Celoxica has launched a new futures trading platform, which it says will make automated trading strategies even faster and more efficient.
Based on FPGA technology, which involves a circuit on one small chip that can be programmed by the customer, the platform is designed to accelerate the flow of market data into trading algorithms to make trading faster. It covers multiple trading strategies and asset classes including fixed income, commodities and foreign exchange. Celoxica’s FPGA cards are compatible with standard PCIe slots.
“For futures trading, processing speed, determinism and throughput continue to play a crucial role in the success of principle trading firms and hedge funds trading on the global futures markets,” said Jean Marc Bouleier, chairman and chief executive at Celoxica. “Our clients and partners can increase focus on their trading strategies for CME, ICE, CFE, Liffe US, Liffe and Eurex.”
Demand for futures trading technology has continued to shift upwards in recent years, with high-frequency trading firms seeking to capitalise on short-term disparities between pricing on US and European futures markets. In November, agency broker and technology provider ITG expanded its futures abilities to include direct market access and algorithmic trading via a deal with Morgan Stanley.
Meanwhile, several firms including CME Clearing Europe, Euroclear and NYSE Liffe, which recently expanded futures clearing on its Bclear trade confirmation and clearing service, have been preparing for an increase in derivatives trading volumes following new rules in the US and Europe mandating the centralised clearing and reporting of the bulk of formerly OTC derivatives contracts.
However, the future of HFT is uncertain in Europe, with policymakers considering a range of measures both at the national and European Union level to control the practice. In France, politicians including finance minister Pierre Moscovici have called for an outright ban on HFT. Furthermore, European Commission proposals to force HFT market makers to stay in the equity markets regardless of conditions have been attacked by market participants who fear it could lead to a drought of liquidity on the region’s trading venues.