UK-based derivatives software house Patsystems is set to move into equities following a minority investment in analytical investment technology provider Tradeworx.
New York-based Tradeworx was founded in February 1999 to provide equity trading applications for personalised asset management, self-directed investment advice, order flow internalisation, and real-time trading tools.
The agreement between the two will see full integration of Tradeworx analytics into the patsystems trading front-end. The UK company says its investment in Tradeworx will provide a route into the equity arena and an opportunity to leverage the Tradeworx contact book of US equity traders.
With the launch of Universal Stock Futures (USFs) on 29 January 2001, Patsystems says it will be able to offer connectivity to both futures and equity markets.
Patsystems says its stake in Tradeworx is less than the regulatory reporting threshold of five per cent of its market capitalisation.