Intelligent Execution System IES

Buy-side order management is a powerful idea that promises the trading industry best order execution and very low latency. But few order management products address “real-time closed loop control”: In contrast to our competitors, VERMONT HARDING’s Intelligent Execution System IES, designed as distributed multi-agent system, rather than brokering deal request over multiple integration providers on speed basis, features a game-theoretic model which learns behaviour of integration partners and autonomously applies counter strategies, such as intelligent order deceleration or bundling. In a highly competitive environment of best price hunting caused by algorithmic trading, IES recognizes order volumes, order frequency and slope speed and analyses the “game situation” along order volumes in order to achieve lower prices or spreads.

Deal Brokerage – IES uses brokering agents cooperating to route deal requests automatically to the best offering with the lowest possible latency – better than other order management systems.

Adaptive Market-Maker Management – Market maker agents monitor and assess the behaviour of their integration partners/liquidity providers and learn how they behave at deal requests. A market proxy agent will detect and consider the pricing of a market maker that increases the buy price of an asset, if the user scrolls with the mouse over a “Buy” button on the market maker’s Web-based user interface before bidding into the IES multi-agent network.

Self-repair Communication Management and Remediation – Communication agents and watchdogs monitor their market-maker specific communication, communicate losses of connection to the multi-agent network for order re-routing and repair their connections autonomously.

Multi-Rates Management – Rates agents acquire both real-time streaming and historic rates from multiple market-makers, record them and manage rate redundancies, overlays or gaps.

Real-time Reporting – Reports are continuously being generated for monitoring, reconciliation and legal purpose.

Network Governance – A drag-and-drop agent network tool allows the user to define, visualize, monitor and easily parametrize his multi-agent based IES.

The Benefits of IES

The benefits of IES include:

• High degree of automation decreases manual work load from traders.
• Order execution for the best possible price.
• Decreased latency of order execution.
• Knowledge advantage at order execution through higher system intelligence.
• Non-intrusive integration of additional market-makers.

Integration with Other Liquidity Providers

An IES by standard integrates with a banks and a liquidity pool. For those enterprises that are concerned about adding more market-makers to the network, IES modularity allows plugging in additional market proxies at system runtime and soft-wiring them.