Why independently monitor algo health?
Institutions have increasingly relied on algorithms to execute trades and minimize transaction costs. Yet several events, resulting in catastrophic losses and over one billion dollars in fines, brought the risk associated with algos to the forefront. Regulators and senior management have highlighted that algo-induced flash events would undermine market confidence. Thus, firms need to balance optimizing algorithm performance with implementing rigorous risk control. The FX Global Code of Conduct, MiFID II, and reputational risk are top of mind for the industry. Ideal Prediction provides an innovative monitoring platform to assist clients with mitigating risk.
What is this new monitoring platform?
Our clients require independent analysis and risk controls beyond basic mandated TCA. Our trading analytics technology combined with a regulatory lens provides an elegant solution for the market.”Ideal Prediction created a flexible and scalable analytics platform that empowers an independent review of algorithmic trading activity.
How does this offering work?
The algo monitoring platform extracts data from the client’s existing infrastructure, creating a seamless transition for our clients. The offering provides a set of monitoring capabilities in the initial deployment. The software is then customized via agile development to address individual client needs: transparency within the organization, alignment with regional regulations, and operational risk. The framework automates tedious workflows to realize rapid tangible benefits and efficiencies.
Why is it compelling?
The inherent need to adopt algos to remain competitive has left companies vulnerable to significant risk and losses. Are trading firms willing to stake their reputation and profits to undertake the challenges of this constantly evolving marketplace? With innovation and disruption always comes increased risk. Ideal Prediction brings expertise and technology that delivers real benefits to manage that risk.