Transcript of "Orc Trading For Warrants Market Making"
ORC TRADING FOR
WARRANTS MARKET MAKING
IMPROVE WARRANTS MARKET MAKING WITH FAST, RELIABLE
Expand your business. Win market share.
Market making has never been more competitive. The need to reduce latency and be first to market has
become paramount for success. With thinning margins, many firms are also looking for new ways to
grow their business. Solutions that provide ultra-low latency access to existing and new markets have
become the key drivers for many market makers today.
Orc Trading for Warrants Market Making delivers customers the choice of a customizable or a complete
ORC TRADING FOR WARRANTS MARKET MAKING HAS HELPED FIRMS:
• Improve quote timing with ultra-low latency connectivity
• Quickly expand warrants market making across new markets
• Reduce infrastructure costs with a scalable, flexible technology platform
• Increase quoting in competitive markets with a high-throughput trading engine
WHO NEEDS ORC TRADING FOR
WARRANTS MARKETING MAKING?
HEADS OF WARRANTS at market making desks needing to DEVELOPMENT MANAGERS looking for open strategy
increase profits and send warrants quotes to the market at control and the ability to prioritize strategies in production
various depth levels.
• When deploying complex warrant quoting strategies
• Would you have more confidence in your trading if you would deployment time be reduced if you could use a
did not need to manually insert quotes at different depth powerful yet intuitive user interface for developing and
levels? modifying strategies?
• Would it be easier to quote a number of warrants with a • When writing strategies for warrants market making,
template that you could design, configure and apply to would greater benefits be gained using an open, flexible
those warrants? language that is compatible with other 3rd party software
and existing class libraries written in other languages?
• Would you be able to increase profits if your traders could
quote hundreds or even thousands of warrants from a • When executing trading strategies, would your traders gain
single screen? comfort and confidence in their trading by knowing that all
their strategies, regardless of priority, will be executed?
• Would you be more profitable if you could take advantage of
economies of scale when quoting warrants? Orc Solution → Use Orc Trading for Warrants Market Making
for Code Manager, Strategy Editor and fully customizable
• Would you find it easier to expand your business if you Java API.
could have your current market makers handle more
trades rather than hiring difficult to find, experienced
warrants market makers?
Orc Solution → Use Orc Trading for Warrants Market Making
for a multi-level quoter and single trading platform.
“ New market conditions place added emphasis on
high-performance and automated trading solutions.
Managing warrants trading requires increased efficiency,
based on key parameters such as low latency and high
” Anders Henriksson, Business Development, Orc Software
ORC TRADING FOR WARRANTS
MARKET MAKING SOLUTION FEATURES
BUSINESS LOGIC - External application on top of Orc Proto- MARKET ACCESS
col/Orc Liquidator protocol for pricing
• Market making engine and/or trading parameters • Connectivity to most warrants venues
- Quote engine based on ATM in Orc Trader • Pricing across Europe and APAC
- Customizable quote engine based on - Orc pricing and volatility models in • Optimized for high throughput
Orc Liquidator Orc Trader/Orc Liquidator • Low latency connectivity to cash and
• P&L and risk management - Custom pricing and volatility models in futures markets for hedging
- Risk sensitivities, scenario analysis and Orc Trader/Orc Liquidator
P&L analysis in Orc Trader - External application on top of Orc Proto-
col feeding Orc Trader/Orc Liquidator
- External application using calculations
from Orc Protocol • Hedging engine • Java-enabled, server-based algorithmic
- External risk system using positions (and - Click trading in Orc Trader trading engine
potentially more) from Orc Protocol - Trade/portfolio hedging in Orc Trader • Reliable
• Parameter management - Custom trade/portfolio hedging in • Scalable
- Pricing parameters (vols, dividends, etc) Orc Liquidator
in Orc Trader
- Trading parameters (refills on trades,
quote volumes etc) in Orc Trader or
Orc Liquidator client
1 Trade futures, options,
and cash products on
1 multiple exchanges
2 Monitor and adjust
2 3 Post-trade risk and
position information to
4 View executed trades
5 Manage and adjust
6 Design your own trading
strategies in Java
ORC TRADING FOR WARRANTS MARKET MAKING
HEAD OF WARRANTS AT A MARKET MAKING DESK THE DEVELOPMENT MANAGER AT A MARKET MAKING DESK
The Head of Warrants at a market making desk (an exist- The development manager at a market making desk
ing Orc customer) wanted to expand his warrants business (an existing Orc customer with many years experience using
significantly. However the firm was aware it could not expect Java) wanted to customize strategies for warrants market
its two market makers to quote at such an increased level, making using existing strategies from other applications.
or the required depths. They also knew they were lacking in Using Orc Trading for Warrants Market Making they were
the floor space and budget to hire the additional number of able to utilize other strategies from third-party applications
market makers required to achieve their goal. In speaking thereby decreasing warrants market making strategy devel-
with Orc, the head of warrants learned that their two market opment time by 30%.
makers could easily expand their existing warrant quoting
level by ten times by using a strategy-driven application with
an intuitive interface from Orc.
Take Advantage Orc is a leading global provider of technology for advanced derivatives
trading and connectivity. Customers include leading banks,
Orc Trading is used by leading financial firms worldwide for enhanced trading and market-making firms, exchanges, brokerage houses,
trading, pricing and risk management on electronically traded derivatives. institutional investors, hedge funds and software vendors.
Orc Trading provides the competitive edge to trade from a single platform,
on any listed instrument, across all asset classes, on 100+ markets. email@example.com
Orc Trading comprises market leading applications including among www.orcsoftware.com
others Orc Trading for Algorithmic Trading, Orc Trading for Arbitrage,
Orc Trading for Market Making, Orc Trading for Risk Management and Amsterdam, Chicago, Frankfurt, Hong Kong, London, Milan,
Orc Trading for Volatility Trading. Moscow, New York, Paris, Stockholm, Sydney, Vienna