Front Arena is a high-frequency trading platform that provides market making capabilities across multiple exchanges. It features ultra-low latency quoting, integrated risk management, and flexibility to modify quoting strategies. The platform automates much of the market making process to free traders for other activities while handling events. It also offers advanced tools for monitoring positions and quotes as well as connectivity to major exchanges.

1. FRONT ARENA
Front 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 Warrants
Keep your quotes updated in the market. Front Arena combines advanced support of
Front Arena provides a great overview plus Exchange Traded Derivatives with the flexible
full flexibility to control your prices. Many pricing of Structured Products and Exotics.
different strategies can be incorporated Quote your prices on the cash exchanges and
including: on special warrant markets like Euwax/TIQS or
SWX/Quotematch. And contribute your prices
• ermanent Quoting and Quote Requests
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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
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underlying prices based on underlying
spreads, volumes and option deltas.
• id/ask adjustments: Drive bids and asks
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off theoretical and market prices. Apply
your own spreads and offsets on price,
volatility and underlying.
• utomatic Hedging: Delta hedge each
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derivatives trade or hedge only when delta
goes outside a defined range.
• rouching Tiger: Silently monitor the
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market and strike against mispriced orders
or quotes.
Safety features enable you to setup automatic
modification 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 hedging
Similarly, you can react quickly to a build-up
of positions or to underlying phase changes
or to excessive volatility in underlying prices.
www.sungard.com/nextgenerationtrading

2. www.sungard.com/nextgenerationtrading
Internal Market or just finding information about withdrawn
Quote your theoretical prices or external market quotes thanks to safety rules. From here
prices on Front Arena’s Internal Market. Make the you can also start and stop your market
quotes available to your sales team or directly to making selectively by market or underlying.
your customers. • olatility management: Choose between
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floating skews, static volatility or own
Cash Market Making defined volatility structures. Great support
to compare your own volatilities with
Cash Market Making helps you to capture
market implied volatilities.
opportunities by maximizing the use of
automated trading. There are many possible • Shared Quote Parameters: All quote
strategies. parameters and rules are stored centrally
for easy handover of quoting responsibilities
For liquidity provision and designated sponsoring,
from one market maker to another.
you can base your prices on indexes, reference
baskets or peers. In the case of multi-listed stocks • Easy data maintenance: As new standard
you can provide liquidity from your montage derivatives are issues they are automatically
view – the equivalent of any single exchange. included in your quote sheet, with the
Simply 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 Connectivity
your 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 features
Front Arena’s Quote Server has sub-millisecond
• Low latency
response times. It fully utilizes the bandwidth
available to the exchange and through advanced • igh-volume with fast-tracking
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priority calculations it sees that the most of prioritized quotes
important quote updates are sent first. • dvanced techniques to decide re-quoting
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frequency and priorities
On underlying price changes, the Quote Server
makes sure your quotes are not subject to • Extensive set of safety rules
arbitrage. And it puts your updated quote first • hared quote parameters for easy
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in line at the new price, maximizing the chance hand-over of quoting responsibilities
for business. • Automated quoting actions when being hit
The architecture enables you to site your Quote • fficient user interface with easy navigation
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Server in the exchange building, further reducing from overview to import details
the latency. • owerful extension possibilities for quoting
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strategies and rules
A platform for Market Making • Automated position monitoring
With Front Arena, Market Making is made easy • Multi-market trading in a single window
and efficient with attention paid to every aspect
• single platform for Position Keeping,
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including:
Risk Management and Proprietary Trading
• uote Monitoring: With the Quote Monitor
Q • ide range of structured equity products
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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 SunGard
SunGard, 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.