FRONT ARENAFront ArenA For MArket MAking   Front Arena for Market Making is a solution for high-volume, ultra-low-latency ... Market                                                         or just findi...
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Front Arena Market Making Fs


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Front Arena Market Making Fs

  1. 1. FRONT ARENAFront ArenA For MArket MAking Front Arena for Market Making is a solution for high-volume, ultra-low-latency market making on electronic exchanges. A high degree of automation frees your market makers for other trading activities while the system handles market events automatically. Extensive flexibility ensures that the system can evolve with your business needs: ranging from incorporating new exotic instruments or modifying quoting strategies, to simply introducing a new method for calculating spreads. Consolidate your market making on to one platform that will enable you to grow your business without restraints and benefit from: • Market Making across instrument types and execution venues. • High volume – low latency quoting capabilities. • Integrated risk management capabilities.Exchange-traded derivatives WarrantsKeep your quotes updated in the market. Front Arena combines advanced support ofFront Arena provides a great overview plus Exchange Traded Derivatives with the flexiblefull flexibility to control your prices. Many pricing of Structured Products and Exotics.different strategies can be incorporated Quote your prices on the cash exchanges andincluding: on special warrant markets like Euwax/TIQS or SWX/Quotematch. And contribute your prices• ermanent Quoting and Quote Requests P to data vendors, such as Reuters and Bloomberg. Answering: Keep quotes in the market continuously or answer quote requests manually or automatically.• dvanced underlying price: Calculate A underlying prices based on underlying spreads, volumes and option deltas.• id/ask adjustments: Drive bids and asks B off theoretical and market prices. Apply your own spreads and offsets on price, volatility and underlying.• utomatic Hedging: Delta hedge each A derivatives trade or hedge only when delta goes outside a defined range.• rouching Tiger: Silently monitor the C market and strike against mispriced orders or quotes.Safety features enable you to setup automaticmodification or withdrawal of quotes. You can Take Control - choose how you view market activity,avoid being hit or lifted too much or too often. risk exposure and hedgingSimilarly, you can react quickly to a build-upof positions or to underlying phase changesor to excessive volatility in underlying
  2. 2. Market or just finding information about withdrawnQuote your theoretical prices or external market quotes thanks to safety rules. From hereprices on Front Arena’s Internal Market. Make the you can also start and stop your marketquotes available to your sales team or directly to making selectively by market or underlying.your customers. • olatility management: Choose between V floating skews, static volatility or ownCash Market Making defined volatility structures. Great support to compare your own volatilities withCash Market Making helps you to capture market implied volatilities.opportunities by maximizing the use ofautomated trading. There are many possible • Shared Quote Parameters: All quotestrategies. parameters and rules are stored centrally for easy handover of quoting responsibilitiesFor liquidity provision and designated sponsoring, from one market maker to can base your prices on indexes, referencebaskets or peers. In the case of multi-listed stocks • Easy data maintenance: As new standardyou can provide liquidity from your montage derivatives are issues they are automaticallyview – the equivalent of any single exchange. included in your quote sheet, with theSimply take prices from the liquid market and correct settings as defined by your defaults.apply your spreads.For position-based pricing, you can define how Connectivityyour prices change when positions start building You are able to make markets on SAX, OM,up – you can increase the number of instruments Eurex, Xetra, Euwax, SWX, Quotematch,you quote without losing control in volatile markets. LSE-SETS, LIFFE, Euronext Cash and Derivatives.The ultra-fast Quote Server Key featuresFront Arena’s Quote Server has sub-millisecond • Low latencyresponse times. It fully utilizes the bandwidth available to the exchange and through advanced • igh-volume with fast-tracking Hpriority calculations it sees that the most of prioritized quotesimportant quote updates are sent first. • dvanced techniques to decide re-quoting A frequency and prioritiesOn underlying price changes, the Quote Servermakes sure your quotes are not subject to • Extensive set of safety rulesarbitrage. And it puts your updated quote first • hared quote parameters for easy Sin line at the new price, maximizing the chance hand-over of quoting responsibilitiesfor business. • Automated quoting actions when being hitThe architecture enables you to site your Quote • fficient user interface with easy navigation EServer in the exchange building, further reducing from overview to import detailsthe latency. • owerful extension possibilities for quoting P strategies and rulesA platform for Market Making • Automated position monitoringWith Front Arena, Market Making is made easy • Multi-market trading in a single windowand efficient with attention paid to every aspect • single platform for Position Keeping, Aincluding: Risk Management and Proprietary Trading• uote Monitoring: With the Quote Monitor Q • ide range of structured equity products W you are always in control of your quoting supported situation. Be it knowing how many quotes will be sent once you start quoting, or how many quotes you have active in the market,© 2009 SunGardSunGard, SunGard Front Arena and the SunGard logo are trademarks or registered trademarks of SunGard Data Systems Inc. or its subsidiaries in the U.S. and other countries. All other trade names are trademarks or registered trademarks of their respective holders.