Mitsubishi UFJ Securities Co., Ltd (MUS) has successfully completed the initial phase of Fidessa’s algorithmic execution service based on Fidessa’s algorithmic trading platform, BlueBox.
Fidessa BlueBox, launched in 2007 and fully integrated with its ordermanagement system, provides easy access to pre-built, industry standardalgorithmic trading strategies along with a toolkit that enables clientsto build their own proprietary models. BlueBox incorporates low-latencymarket data and global exchange connectivity, thus providing a proven,easy to deploy and cost-effective application for brokers wanting to enterthe algorithmic trading space.
“With the growth in electronic trading and rapid developments in trading technologies, there are many types of client orders which can be more efficiently handled and executed using algorithms. It is our mission to provide the highest quality execution service to handle these types of orders so, for us, algorithmic trading is a must-have execution channel for our clients,” says Yoshiki Shinchou, general manager, Research and Development Division in the Global Markets Business Unit at MUS.
MUS anticipates considerable demand for its algorithmic executionservices from both off-shore buy-side institutions, particularly hedgefunds, in the short term and from domestic asset managers in the midterm. Having completed the first phase of its algorithmic tradingservice, MUS now provides its clients with TWAP and Short Sellstrategies, including a combined TWAP/Short Sell strategy, as atrader-intermediate execution. A VWAP model and volume-in-line will beadded in the next phase of the project.
“Time to market was a very important factor for us. One of the key issues in developing algorithmic execution capabilities lies in successful integration with the order management system. Fidessa BlueBox enabled us to bypass this issue, so we were able to launch phase one of our algorithmic trading service within three months of the project start date,” adds Shinchou.
“Since its launch in 2007, we’ve seen uptake of our algorithmic tradingplatform with our large domestic broker clients. The ability to deploy arange of bespoke algorithms and deliver these to the market at anaccelerated pace gives BlueBox users a real advantage in theincreasingly competitive automated trading space. We’re delighted thatMitsubishi has reached this important milestone and we will continue tosupport them as the project goes forward,” says Hiroshi Matsubara, head of Marketing for Fidessa Japan.
“We’re in the early stages of our algorithmic execution delivery model but we are committed to expanding the overall capacity of our automated trading capabilities. We want to inject some originality into our algorithmic services so the fact that the BlueBox framework enables us to develop and deploy our own proprietary algorithms, as well as out-of-the-box strategies, means that we can provide our clients with some truly unique services,” adds Shbinchou.