High Frequency Trading

Latency sensitive algorithmic platforms.

High Frequency Trading infrastructures are the F1 race cars of the technology world where performance is measured in milliseconds.

As technology has advanced investment banks and hedge funds have increasingly adopted computerised trading strategies with High Frequency Trading now accounting for around 70% of stock trades in the US and EU. High Frequency Trading (HFT) involves the execution of computerised trading strategies based on algorithms which determine the particulars of the order such as timing, price, or quantity. Often referred to as Algorithmic Trading, computers analyze market data identifying trading opportunities much quicker than human traders are capable of and then executing orders automatically without any human intervention.

High Frequency Trading strategies focus primarily on holding short-term positions in equities, options, futures, ETFs, currencies, and other financial instruments with the objective of achieving small, regular profits. It is for this reason that in the world of High Frequency Trading speed is king. Organisations that engage in High Frequency Trading compete with other high frequency traders on the basis of speed, particularly where organisations seek minute advantages in arbitraging price discrepancies between disparate markets.

Technology plays such an integral role in the practice of high frequency trading with virtually every aspect dependent on an underlying technological component and its performance. It is for that reason a specialist technological experience is needed in order to implement HFT solutions that compete with other organisations on a global scale. Since May 2010 when what is commonly referred to as the Flash Crash occurred the practice of High Frequency Trading has also come under intense public focus with greater regulation now an important consideration. Exagenica has helped investment banks and hedge funds implement and operate low latency high frequency trading solutions which allow them to execute computerised trading strategies in markets all over the world. We provide architectural design, solution implementation and operational support services for clients looking to leverage the power of technology to engage in quantitative trading.