The financial market industry and community has welcomed the launch of DMA Live! (direct market access) solution by Financial Technologies (India) Limited, the US$1.84 billion (market capitalization as on 31st March 08) global leader in creating and operating technology-centric, next-generation financial and commodity markets.
DMA LIVE! from Financial Technologies is built on ODIN suite of products and will allow clients direct control of their trades without depending on the broker for trade execution. DMA LIVE! will leverage the integration with ODIN solution platform, the market leading OMS (Order Management Solution) that Financial Technologies provides to over 80% of the large institutional and brokerage clients. The number of trading licenses of the ODIN platform has seen a 95% growth from 164,000 in March 07 to over 320,000 in March 08.
Mr. G. N. Bajpai, former SEBI Chairman and Advisory Board member, Financial Technologies, said: "The implementation of the DMA LIVE! solution will enable institutional clients to have direct control over orders given and would result in faster execution, besides reducing risk of errors associated with manual entry. DMA LIVE! trading has been enabled for both the segments - equity, and equity derivatives. Our DMA LIVE!-compliant release provides advanced quantitative modules and algorithmic trading capabilities."
DMA LIVE! offers direct control over orders, faster execution, reduced errors, greater transparency, increased liquidity, lower impact costs for large orders, and better audit trails. Financial Technologies has implemented DMA LIVE! solutions for large brokerage and financial institutional clients that are potential users of DMA, and has also provided them with a complete solution connecting domestic buy side with sell side through an Execution Management System (EMS) that gives them an edge over other providers. Domestic and foreign brokers can provide this facility to their high volume Institutional clients.
Mr. Janak Mehta, President, LKP Securities Ltd., commenting on the DMA LIVE! implementation, said: "We are associated with Financial Technologies for deploying DMA LIVE! solutions to our numerous clients, which will help combat the high volume and high-risk demands of our clients, including banks, domestic and foreign institutional investors."
LKP Shares, a Financial Technologies client, has received approval from Bombay Stock Exchange and National Stock Exchange to provide DMA LIVE! to their domestic and international institutional clients while others like Dolat Capital, Inventure Growth, KR Choksi, Networth Stock Broking, Prabhudas Liladhar, Senator Securities, Wallfort Finance and a number of other leading foreign broking houses and Indian institutional broking houses have subscribed and are waiting for approvals.
Mr. Manjay Shah, Director Marketing, Financial Technologies group, said: "The introduction of DMA LIVE! trading for institutional investors in India reflects the nation's move towards the technologically advanced and efficient electronic trading infrastructure. Financial Technologies will continue to innovate and offer solutions that transform the traditional functioning of the capital markets."
DMA LIVE! will provide the following benefits to the fund houses including mutual funds, insurance companies, banks or international clients, international hedge funds and others in following ways:
- Low latency solution offering trade by supporting client's connectivity to and from the OMS to different exchanges.
- Monitoring, analysis and resolution of FIX connectivity issues to and from the OMS that handles very large volumes of equity transactions daily.
- Usage of third-party testing tools to ensure high service levels on speed of trade execution.
- Limited chances of execution irregularities.
Mr. Bijay Murmuria, President, Association of National Exchanges Members Of India (ANMI), said: "DMA LIVE! fulfils a long-term need of institutional investors for direct access to order execution and swift trades. It also addresses issues and concerns relating to transparency, front running and insider trading adequately and shall open up the environment to algorithmic trading. This FT product should be immensely useful to our member-brokers to satisfy client needs."
DMA flows account for 15-18% of the US markets and 8% of the European markets of the respective totals, and are growing fast. The overall market for DMA providers and users is large - consisting of over 1,000 brokerage firms and around 1,350 domestic and foreign financial institutions. About 40-50 brokerage firms and 80 domestic and foreign buy side firms are estimated to use DMA contributing estimated 11% of the total market volume by 2010.The top 15 brokerage houses account for around 85% of the total institutional trades (est.154 billion shares for 2007) in India.*
Mr. Kiran Karnik, former President of NASSCOM, and Advisory Board member, Financial Technologies, said: "We believe that DMA LIVE! provides an excellent market opportunity for brokers to expand and deepen their offering to their customers in the current soft economic environment. DMA LIVE! once again has been a distinct factor in driving disruptive innovation that provides huge strategic value to its customers. DMA LIVE! will not just allow increased hedging and arbitrage activity from institutions but also allow institutions to use decision-support tools or algorithms for trading - program trading".