Services Futures & Options

Circuit Board

itarle provide algorithmic trading services on all major global futures and options exchanges including CME, ICE, Eurex, LIFFE, LME and SGX.

Our algorithms for global futures and options contracts are built using a contract by contract approach, incorporating bespoke microstructure dynamics, along the maturity curve. Therefore, every trade executed using itarle algorithms offers market leading performance.

The itarle algorithmic trading service for futures and options consists of core strategies and many customisable parameters. For example, itarle algorithmic services can encapsulate the following execution techniques:

Single outright orders

Complex spread trades

Multiple exchange spread trades

CTA-style
baskets

Index
arbitrage

Equity Options markets have increasing rates of fragmentation (US Options markets and TOM MTF in Europe) and there is also now competition in short term interest rate markets (LIFFE vs NLX). Given this trend, smart order routing is becoming an increasingly important component of futures and options execution.

Taking an intelligent approach to Smart Order Routing, the itarle iSOR first looks at the size of the order relative to the consolidated orderbook for all relevant exchanges.

The iSOR then calculates the most statistically optimal way to split the order for best execution, considering price, exchange fees and venue preferences. The iSOR logic updates on a tick by tick basis, offering dynamic best execution capabilities. Also embedded are complex anti gaming techniques ensuring that the iSOR

  • Improves the overall execution price of client orderflow
  • Improves liquidity opportunity capture thus reducing ‘gaming’
  • Reduces execution and clearing fees
  • Reduces fragmentation messaging to free up bandwidth on your network

Good execution algorithms can be distinguished from poor ones through the statistical analysis of previous orders.

At itarle, however, we go further than simple comparisons and provide detailed metrics on the following:

Real Time and Historical Trades

The itarle Vision system allows you to monitor the relationship between the parent and child orders in real time as well as all historical trades. It provides details such as historical slippage, volatility, spread, liquidity and fragmentation.

Execution Cost Metrics

At itarle we embed all of the ticketing costs prices per execution venue into the actual algorithms. Therefore, execution costs are minimised with respect to liquidity as part of complex decision making process. Over time, this optimisation provides huge ticketing cost savings for itarle customers and post trade reports are regularly given to prove these savings.

Latency Metrics

At the customer's request, itarle will provide a latency report per execution venue showing the median time, average time, 95th percentile and the 99th percentile. These latency metrics help itarle customers to identify bottlenecks in the trading process thus enabling them optimise their trading systems and extract more value out of their existing infrastructure.