Varalen Trading Corp announced the creation of Liquidity Providers and Brokers Uniting System, an innovative new ECN platform for brokers, investment funds, and other participants of over-the-counter markets. According to the company statement, the launch is scheduled for the fourth quarter of 2008.
?The reality of the financial sector today is that most brokers around the world do not have any way of accessing high-quality liquidity from prime brokers. Connecting to existing ECNs is a very expensive option, so only relatively large players can afford this. Moreover, it can cause big problems due to the appearance of non-market quotes, activating limit orders, slow order execution, and the delay of quotes even for instruments with high liquidity?.
?Our system is designed to give brokers maximum flexibility in configuring liquidity feed, trade instruments, routing of trade requests, risk management rules, order execution methodologies, and much more, including high degree of protection against typical problems in dealing like non-market quotes, latency arbitrage, etc.
?We aim to bridge the largest ECNs and prime brokers into one pool in order to be able to fully analyze the market situation. The very complex mathematical model we have developed includes a large number of algorithms that together provide maximum protection of the order book against incorrect orders, on the one hand, and, on the other, do not correct the order book in cases when the order is truly at market value despite noticeably changing the best bids and offer in the order book.
?Solutions similar to ours simply do not exist on the market today? announced M. Stanford, VTC?s Managing Director.
Currently, the company is developing the system architecture as well as recruiting developers with expertise in HFT (high-frequency trading) systems development.
press service of Varalen Trading Corp.
