Choosing Automated Trading Systems by Asset Class and Execution Needs
Summary
The document surveys categories of systems used by hedge funds for automated trading and explains why platform choice depends on the instrument and workflow. It names examples spanning Bloomberg order and execution tools, futures-focused systems, listed-options technology, and broker-neutral execution management systems. It also notes that some firms build their own execution platforms and connect them to brokers or banks through FIX adapters or APIs.
The discussion highlights practical selection criteria rather than recommending a single solution: asset coverage, access to multiple counterparties, connectivity, and latency needs. One response cautions that general financial data platforms may not suit latency-sensitive automated trading, while another distinguishes broker-neutral execution tools from individual broker systems. The examples are drawn from individual answers, include product-specific and potentially dated claims, and offer no comparative performance data. A platform described as suitable for one strategy or asset class may not fit another, so the document is best treated as an orientation to system categories rather than a current procurement guide.
Key ideas
- Automated trading platform choice depends on the asset class and execution workflow.
- Hedge funds may use broker-neutral execution management systems to access multiple counterparties.
- Some trading firms build their own execution software and connect through FIX or broker APIs.
- Latency requirements can rule out platforms designed primarily for broader trading workflows.
- The platform examples are not a systematic or current comparison of performance and capabilities.
Tags
Full text
# What are the common trading systems for hedge fund automated trading? # What are the common trading systems for hedge fund automated trading? Is there any common trading system that is implemented by hedge fund, especially for equity or forex automated trading? I know some big names like Sungard and Bloomberg. Is there any other choices which the including API? ## Answer by Matt Wolf (score 4) https://quant.stackexchange.com/a/3779 There are: Bloomberg: TOMS, SSEOMS, AIM, EMSX TT Trading Systems (X-Trader, mostly for futures, spreads,...) Orc Group: Orc (often used for listed options) And uncountable others, really depends on which product you look to trade. But please note that you asked specifically about automated trading and to be honest, most shops code up their own order execution platforms and hook them up to Fix adapters or APIs of brokers, banks,... ## Answer by Shane (score 3) https://quant.stackexchange.com/a/4525 You might want to take a look at the Waters Technology buy side technology awards, especially for execution management systems (EMS). Most hedge funds want to use multiple counterparties so they would want a broker-neutral trading system. As far as I'm aware, the most popular platforms are Portware and Flextrade. ## Answer by Katie Simone (score 0) https://quant.stackexchange.com/a/4354 There are lots of automated trading system in forex like: - EA Shark 7.0 - EA Sigma 4.0 - FX Pulse 1.0 - ProFx 2.0. ## Answer by Andy Flury (score 0) https://quant.stackexchange.com/a/8216 Disclaimer: I work for AlgoTrader. AlgoTrader is used by some smaller hedge funds, especially in the volatility trading area. AlgoTrader is a Java based Algorithmic Trading Platform that enables development, simulation and execution of multiple strategies in parallel. The automated Trading Software can trade Forex, Options, Futures, Stocks & Commodities on any market. The system is based on Complex Event Processing (CEP) and Event Stream Processing (ESP) using Esper. Also, the system does have both a FIX interface as well as Bloomberg connectivity. ## Answer by Bikenfly (score 0) https://quant.stackexchange.com/a/35410 For US equities and futures check out Lime Brokerage (disclosure - I used to work there). Bloomberg and similar systems ARE NOT realistic solutions for an automated trader that care at all about latency.
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