Traders can now get real-time execution and order-flow risk analysis right on their desktops, which is expected to help them trade more efficiently and quickly.
San Francisco-based 4th Story has begun to offer trading desks and brokers a full suite of analytics, data visualization and notification features.
Both the buyside and sellside can see real-time analysis and alerts visually via heat maps and grid charts. Users can click on an alert when it appears to determine the risk profile of an order. They can then decide whether to send the order or cancel it.
Here’s how it works. Based on historical patterns stored in 4th Story’s database, the risk analysis software looks for orders lying outside of historical patterns and identifies them, chief executive Steve Smith told Traders Magazine. Once identified, the trader is alerted and can decide a course of action.
“This system was first offered to only buysiders, but we’ve now expanded it to the brokers. Brokers can, in turn, now offer this to whichever clients they choose,” Smith said.
The system is designed to work with most order and execution management systems and makes a copy of the order’s FIX messages. The front end is browser-based to speed deployment.
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