For Market Makers and derivatives traders we have developed the ATOMPRO SCREENTRADERŽ.
In today's electronic market environments traders need the tools that enable them to trade on multiple markets with reliable and fast software. Recent developments in the European exchange traded derivatives environment indicate that preferred market model evolves to a quote driven market, where liquidity providers are obliged to continuously quote a number of options during the entire trading day. We developed the AtomPro ScreenTraderŽ with that in mind.
Exchanges may assign different roles for liquidity providers. Each type of liquidity provider is given certain privileges that are paired with certain obligations. The AtomPro ScreenTraderŽ gives you the tools to fulfill these obligations, intelligent quote engines and automated response to quote requests are just a few of the features that will enable you to trade and quote a number of option classes on multiple exchanges simultaneously.
The ATOMPRO SCREENTRADERŽ contains the following features:
For each product in a certain class, the trader can set a quote that is constantly updated as the underlying security moves. The basis for this quote forms the theoretical price of an option. Around the theoretical price a bid offer spread is calculated. Depending on the exchange this can be (a percentage of) the maximum spread, a bid-offer spread according to a schedule that is the result of an agreement between the exchange and the liquidity provider, or any user defined bid - offer spread. The trader can change these quotes to meet specific market circumstances. Amounts can be entered to fit the quotes to the market without making changes to theoretical parameters. Before quotes are send to the market they are checked against the quotes and orders that are in the market, they can be adjusted automatically to prevent direct hits with existing market orders. More importantly, after trades the quotes can be moved automatically to prevent the trader from trading too many contracts at a certain price.
Some exchanges may have a 'fast' or 'volatile market' rule in place that temporarily changes quoting obligations, these changes are applied automatically. Derivatives exchanges may have rules in place to limit the amount of updates a liquidity provider sends to the market. Before AtomPro ScreenTraderŽ sends quotes to the market it determines the priority of each quote based on possible bandwidth restrictions and theoretical option prices. This ensures optimal usage of quote updating capacity.
The AtomPro ScreenTraderŽ also features a 'Market Scan'. This tool will constantly scan the markets for trading opportunities based on a theoretical edge. Traders have the ability to set 'Hidden Quotes' in the same manner as Auto Quotes can be set to the traders' preferences. These are Immediate-Or-Cancel orders that are send to the market to as soon as the opportunity arises. The Hidden Quotes will move with the Auto Quotes and are disabled after a maximum number of lots is traded.
Quote Request Responding
Most electronic exchanges require their liquidity providers or market makers to answer to Requests for Quotes. AtomPro ScreenTraderŽ will take care of these quote requests for you. The traders can predefine the quotes that are send as answer to these quote request. This can be done with different quotes than the Auto Quote would generate. This enables traders to answer to quote requests.
Strategies or Combination Orders are getting more and more important on modern electronic exchanges. The traded volumes are increasing while the margins are often larger than trading Single Products. The ATOMPRO SCREENTRADERŽ supports trading Combinations for Derivatives. The ATOMPRO SCREENTRADERŽ also supports trading Delta Neutral Combinations where the Underlying Value is traded with the combination.
The ATOMPRO SCREENTRADERŽ is highly suitable for Market Makers as it provides them with the tools that are needed to maintain two-sided markets in their assigned classes. The software features an intelligent Auto Quote Engine and both the Auto Hedge and Quote Request Answering functionalities reduce the workload of the traders. Traders will also highly appreciate the Hidden Quote functionality that will respond to trading opportunities by sending Immediate-Or-Cancel orders to quickly take profit opportunities as they occur. It doesn't matter whether you wish to act as a market maker or a market taker in a screen-trading environment, ATOMPRO SCREENTRADERŽ offers it all.
To see ATOMPRO SCREENTRADERŽ in action, contact us for a demonstration.
T: +31 (20) 55 10 500