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Jared Dillian
Traders Magazine Online News

Was it Worth It?

In this piece from 10th Man, author Jared Dillian discusses how the ETF revolution is less about ETFs and more about indexing; about how people have come to view stocks less as stocks and more as blobs of stocks.

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June 19, 2008

4th Story Builds Technology That Builds Algos

By James Ramage

Sellside firms looking to buy the technology to build their own algorithm infrastructure have a new best friend. Software vendor 4th Story designed its 4S.Blue Ridge algorithmic trading server to let brokerages build their own infrastructure to offer their customers algos.

Blue Ridge is a platform for running algos that attaches through a broker's order management system directly, or through a FIX connection, said Steve Smith, chief executive at San Francisco-based 4th Story.

"We're not selling algos; we're helping [customers] implement their own algos, because that's what they know," Smith said. "Blue Ridge hosts them."

When a broker turns a buyside order with specific instructions over to Blue Ridge, the server runs that order in one of the broker's strategies-whether VWAP, a participation strategy or a multi-leg execution strategy, Smith said. The server does whatever that strategy wants it to do.

"Let's say the guy wants to time-slice the order," Smith said. "He sends it to his broker, and then it goes to Blue Ridge. Blue Ridge would run that order in a time-slicing algorithm, and effectively, you're going to get an order every time the time slices."

Blue Ridge can be used for equities, futures and foreign exchange.

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