Predator Sell-Side

Predator Sell-Side provides powerful execution management and trading with superior stability and speed. It benefits a wide range of connectivity solutions from order collection to order execution using FIX protocol and the main existing trading technologies.

Market Data Integration

Bid/ask from over 200 electronic exchanges worldwide.

Traders can check all the prices for their order book and the best quotes for a single security from different market places, at a glance, on one single working tool.

The importance of market depth:

- Aggregate a fragmented market
- Reduce market impact
- Condition for ‘best execution’
- Guide for best suited execution strategy

The benchmark for traders, best execution, gets more and more complicated to achieve in the post-MiFID (or RegNMS) environment.

Today, traders must be able to deal with multiple price types from multiple sources to trade multiple instruments.

Predator integrates real-time data from the connected markets with datafeeds from various vendors (Bloomberg, Thomson-Reuters, SIX Financial Information, etc.) used for trading information like market overview, market depth, news tickers, etc.

Internal Matching Engine

The Internal Matching Engine is Predator’s specific feature acting like a stock exchange and therefore allowing to match buy and sell orders from clients and/or inhouse (Nostro) instead of sending each order to an electronic exchange.

The Internal Matching Engine helps clients by providing more liquidity and lower execution costs. It helps traders maximize large order execution, reduce market impact and obtain price improvement by using the internal liquidity.

The trader has the option to manually cross internal orders or to send them to the automate matching engine. Partial internal order cross is also possible, remaining order size being sent to an external dark pool, exchange or broker.

Algorithmic Trading

Algorithmic Trading allows entering orders with computer algorithms deciding on aspects of the orders such as the timing, price, or quantity of the order, or in many cases initiating the order without human intervention. Algorithmic Trading is widely used today, for example to divide large trades into several smaller trades in order to minimize market impact, and risk. Sell side traders, such as market makers and some hedge funds provide liquidity to the market, generating and executing orders automatically. In this “high frequency trading” (HFT), computers make the decision to initiate orders based on information that is received electronically, according to strategies defined by human traders.

PREDATOR is unique in providing clients with 3 basic options for using algorithms:

- Pre-installed algos provided by Teleinvest
- Broker defined algos
- Developing and inserting individual algos

Straight Through Processing

The STP represents the host interface to non-Teleinvest applications, suited for straight through processing of orders and their execution information.

Its goal is to completely automate the trading process without the need for re-typing the orders. The STP allows the banks to load into the Predator trading platform information like custom securities catalogue, positions, valuation prices, corporate actions etc.

The STP has the advantage to:

- Reduce the operational risk by eliminating the manual interventions
- Minimise the time for trade settlement
- Increase the quality of the settlement data
- Minimise the operational costs

Currently the STP module can use several protocols as the Teleinvest STP protocol, FIX and FIXML protocols.

Features

Multi-Asset Multi-Market EMS

An EMS or Execution Management System is the logical complement to an OMS, as it handles the details pertaining to the order once it is executed or filled. Predator helps the trader to keep track of orders, be they executed wholly or partly, cancelled or amended, stopped or re-introduced, including proper allocation of aggregated orders which need to be attributed to different portfolios or clients. The system also provides interfaces to host systems or banking systems used in the back-office.

Predator’s OMS / EMS offers extended order management (O.M.S) and execution management (E.M.S.) for all asset classes and markets in a single system.

The Predator OMS / EMS addresses all the workflow of buy-side trading desks, from portfolio management to trading, investment fund allocation, audit, reports and compliance. Predator OMS / EMS provides extensive connectivity to a wide range of networks (ECNs), brokers, DMA access and complete real time market-data.

Key Features

- Supports all major elements of buy-side trading desk workflow
- Adapted for equities, fixed income, listed and OTC derivatives, money markets and FX
- Allow organization of lists using dynamic filters, fully customizable by the user
- Offers consolidated view of trading activity, EDA, DMA and direct access to broker algorithms
- Provides a broad range of advanced execution tools, import/export capabilities
- Smart Order Routing, Program Trading, Position keeping, Internal Matching Engine from a single screen
- Fully STP solution for buy-side organizations
- Comprehensive control and audit trail of the trading process

Direct Market Access

Direct Market Access (DMA) on Predator allows customers to access liquidity more directly on a given market venue.

Using DMA, the client takes control over the way a transaction (“trade”) is executed and enjoys some important advantages:

- DMA eliminates sources of errors or execution irregularities, as the broker does not work orders but only provides his exchange member ID
- DMA orders are fast as they allow the trader to take advantage of market opportunities quickly, before less sophisticated competitors
- DMA offers lower transaction cost because it does not require exchange membership

Smart Order Routing

Predator’s Smart Order Routing (SOR) module is based on a set of rules concerning market prices, liquidity and execution time. It can automatically redirects buy and sell orders for financial securities (shares, bonds, options, etc.) to a specific electronic exchange or to multiple venues, every time the conditions set in the algorithm are changing.

Predator SOR represents a very useful complement to the Predator OMS /EMS in order to achieve the requirement of ‘best execution’ as today many financial instruments are simultaneously traded on many different market venues.

FIX Engine

The FIX engine enables the client to connect to all FIX based networks or markets, extending the connectivity range for buy-side organisation.

The software server is handling all types of FIX protocols from FIX 4.0 to FIX 5 and converts them to the Predator IFIS language. The FIX server is developed in order to handle extreme message throughput with minimum latency.

The FIX engine enables the client to connect to all FIX based networks or markets, extending the connectivity range for buy-side organisation.

Reports & Audit

The trader can obtain the whole history of an order or trade, from the moment it was entered in the platform until it is executed or deleted. Predator’s Report & Audit are valuable tools for compliance and control purposes.

Using the Audit module, any authorized person (the head trader, fund manager or auditor) can request a full or selective audit-trail on all or any data, for example : price & time stamp on order reception, order placing, changes, reception of execution etc. Definition of selection criteria is very simple.

Reporting capabilities are available to both users at the client and users within trading department. The data available for reporting is limited based on the viewing permissions assigned to the user. Predator provides the option to print paper tickets for each order, together with its matching fills, to send reports by email.

Predator provides a summary report for a specified date, for all orders placed and for all executions. The report is available to print on demand. At least one year of data is available on-line for viewing and reporting.

Predator provides a flexible reporting tool which allows users to run order, fill or position reports based on user defined templates. The reporting tool allows the user to run reports based on any combination of the following: date range, client(s), account(s), exchange(s), product(s), trader(s), status(es), client reference(s), price range etc.

Risk Management

One way of managing risk is knowing your position as regards to unexecuted orders on the market or long/short positions by client, trader, etc. Predator allows the real-time supervision of positions and setting individual limits or alarms.

Key features of Predator’s Risk Management module:

- Adapted for Nostro (proprietary) or Client activity
- Allows the introduction of limits for the traders and for the « books » of instruments
- Real-time limit control for Real & Virtual Positions
- Coupled to the Predator V.I.P. spreadsheet to allow real-time calculations for risk evaluation
- Flexible concept built on risk management formulas

Position Keeping

Predator’s Position Keeping module is specially useful for positions analysis, investment strategy supervision and control.

It indicates in real time any trading positions on different levels:

- Bank
- Trader / Groups of Traders / Clients
- Instrument / Groups of instruments
- Type of Instrument (Bonds, Options, etc.) / Instrument sub-types (Swiss Bonds, Foreign Bonds, etc.)
- Instrument Industry Segment (Aerospace, Auto, etc.)
- Country/Currency

The trader has a real time view over the realized and unrealized P&L, Account, Long or Short positions, Position Size, Position Price, Position value, Transaction, Current prices etc.

Ratio Trading

An internal developed algorithm and trading automate for selling a portfolio of instruments and in parallel buying another group or type of instruments completely automate while trying to minimize the risk of unbalanced positions.

Allows traders and fund managers to implement sophisticated market neutral strategies. Developed on the Teleinvest V.I.P. base, the ratio trading module automatically sells one instrument or a basket of instruments while buying other instruments only when predefined parameters are fulfilled and the desired liquidity exists on the market.

The ratio trading module may also be used in arbitrage strategies in order to take some profit from the spreads which can appear between different markets where the same instrument is traded.