CQG, a leading global provider of high-performance technology solutions for traders, brokers, commercial hedgers, and exchanges, has announced the launch of a comprehensive suite of exclusive execution technologies designed to give market participants new tools to achieve greater efficiencies and optimal trade execution, particularly for large or complex order types.
The new initiative builds an entire suite of functionality off of the infrastructure of cutting-edge software assets CQG acquired from Blue Trading Systems (BTS) in June 2020. It also leverages technology CQG has been developing in recent years – all aimed at providing smart trade execution opportunities for buy-side and sell-side firms that can improve pricing, provide increased visibility of aggregating different markets, and enable large global firms to efficiently match client orders in a regulatory-compliant fashion.
CQG Vice President of Execution Technologies Kevin Darby, formerly co-founder of BTS who joined CQG last year to lead the integration of the software, is leading the new Execution Technologies business unit.
CQG President Ryan Moroney said: “We’re really excited to bring this new offering to market this week, based on an effort that has been years in the making. The Execution Technologies suite gives buy-side institutions such as hedge funds, large insurance companies, and commercial hedging operations that utilize the industry’s biggest banks and brokerage firms the ability to execute large, complex orders as efficiently as if they were trading a handful of contracts. We have also further strengthened capabilities for the professional trading community reflecting the myriad sophisticated order types they want to employ.”
The offering is available through multiple platforms, including CQG Integrated Client, CQG Desktop and various CQG-supported application programming interfaces (APIs). The suite includes numerous components now available to all interested clients, including:
CQG Algos – A comprehensive set of pre-built algorithmic order types, employing a co-located low latency trading engine, for optimal server-side execution of Arrival Price, VWAP (volume-weighted average price), TWAP (time-weighted average price) and other algorithms. Each algorithm is built to track or beat benchmarks with specific implementations dedicated to in-depth analysis of microstructure, resulting in more passive order fills;
Custom Algo SDK – A software development kit allowing users to mix and match CQG Algos with their own custom C++ algorithms, minimizing development and testing cycles;
Algo API – A client-side interface used to control and compose server-side algorithms running inside of Custom Algo SDK, coupled with an evolving set of back-testing and analysis tools;
AlgoAnalytics – An augmented transaction cost analysis (TCA) tool that provides a transparent view into the core value proposition of the offering, with benchmark and micro-structure analysis;
Internalization Engine that allows large banks and brokerage firms to match orders from different clients internally, giving them cross-trade opportunities that reduce exchange fees and compliance risk, and providing a file or audit records of internalized orders to post to back-office systems;
Server-side Aggregation that provides a pooled liquidity view of cross-listed, fungible assets while allowing smart order routing into the constituents of the pool, according to user preferences.
Also in the works are new components slated for introduction later this year and in 2022, including:
Additional algorithmic order types for multi-leg futures trading and a suite of options algorithms;
CQG Spreader 2.0 – a sophisticated new version of the firm’s existing functionality, which will include new low latency spread routing, with considerably faster execution times that allow users to employ their existing CQG Spreader interface.
Darby said: “Our core technology for CQG Algos facilitates ultra-low latency access to markets with an emphasis on strong, lightning-fast analytics, as well as flexible, reliable algorithms. Through novel implementation of order types, we’re able to deliver high-quality fills with the goal of reducing implicit trading costs and market impact involved in accumulating a listed derivatives position for buy-side firms. The SDK allows us to partner with long-time clients like proprietary trading groups for high-value trading strategies, while respecting the sanctity of their intellectual property.”