Automated Front End Trading
Automation in trading is a trend that has been observed by most traders, and is used in order execution, portfolio management (such as margins monitoring), and market analysis tools.
80% of traders expect AI and machine learning to be fully integrated into the trading space within three-to-five years. Automating the front end operations as a whole enables faster and more accurate trades, and reduces cost as a result of lower error.
Other trends for front end trading involve use of cloud deployments, which Refinitiv has already been doing. Michael Chin at Refinitiv believes that using the cloud will help to lower costs and maintain agility in developing trade solutions — since there is no need to maintain the infrastructure and storage space for all their historical data. Bloomberg has also mentioned that sell-side trading has a higher need for automation, given that automation can help traders analyse and calculate risk in real-time.
On the front end operations, the following features have already been automated:
- Watchlist, order history, order monitoring, manual and smart order execution function. These allow traders to have a complete set of functions for easier order execution.
- Balance, margin and transactions monitoring. Constant monitoring enables traders to manage customer’s portfolios, and manage risks for each order.
- Chat module, customer helpdesk, price parameters setup, margin call alert. These functions help the trader to establish clear communications with their customers, and manage their customers’ trading accounts.
- Aggregated news, videos and advanced charting features. With these features ready in place, traders may now visualise the market conditions and keep up to date with market data effortlessly.
Hydra X front end module provides easy-to-use Order Management and Execution Management systems. These systems have multi-device support, fully customisable surface, cloud-based deployment and ultra-high performance. These help to ensure that trading is as convenient and as accurate as possible.
Front end features are extremely important in helping to retain the customers and many of these activities are already automated to reduce manpower and operational redundancies, thereby reducing operating costs, and increase accuracy and speed of trading, which are important in raising company profits.
The trend for automation is ever increasing — especially with the growth of multi-asset classes and buy-side as mentioned by Refinitiv, and with increased convenience in trading as mentioned above.
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