RTS Realtime Systems Group (RTS), a leading trading solutions provider, today announced its collaboration with The MathWorks, Inc., the leading developer and supplier of software for technical computing and Model-Based Design.
Under the arrangement, RTS has integrated MathWorks popular MATLAB, the interactive technical computing environment, into the RTD Tango algorithmic trading solution. This integration enables algorithmic traders to significantly reduce the time from idea to production, greatly increasing their firms' operational efficiency as they identify and capture opportunities in one integrated environment.
MATLAB's mathematical, statistical and visualization functions combined with RTD Tango offers traders the ability to create highly advanced pre- and posttrade analytic environments and connect them to their execution algorithms. The collaboration represents a new innovative integration between MATLAB's advanced analytics platform and RTS' leading algorithmic trading execution engine.
RTD Tango gives algorithmic traders a programming environment that they can use to design and deploy their own proprietary trading strategies. The MATLAB product family enables users to perform many computational finance tasks, including backtesting, advanced pricing, time-series analysis, risk modeling, and optimizing Tango strategies.
RTD Tango sends and receives data to and from MATLAB via Tango's Feed application programming interface (API). This gives traders the ability to decide which processes and calculations are resource-intensive and offload them onto the MATLAB server, allowing the Tango server to focus on low-latency execution algorithms.
Said Anthony Tassone, RTS Vice President, Algorithmic Trading Solutions: "The integration of MATLAB into RTD Tango creates a true "alpha1 generation platform" and gives trading firms the ability to do more, faster and with fewer resources. Typically, once traders identify an opportunity, it can take several months to bring that idea into production. The trader may need to consult with programmers and financial engineers to help them model, capture and manage the opportunity. With our integration, we've reduced the days until deployment by enabling a single trader to seamlessly identify, capture and manage an opportunity from one integrated platform. The entire strategy can be conceived written, tested, deployed and controlled by the same user. This dramatic reduction in time and resources needed can help traders and their firms capture not only market alpha but also operational alpha2."
"Traders want their analytics to drive their execution," said Steve Wilcockson, Industry Manager for Computational Finance for The MathWorks. "We are delighted to combine our advanced mathematical and financial-oriented technologies with the RTD Tango high-speed execution facility to enhance the ability of traders to build, test and deploy new strategies within minutes and thus act on the optimal time to buy and sell."
"We've also given traders the ability to separate out intense computations, such as Monte Carlo simulations, and offload them to MATLAB's environment while the Tango engine maintains its low-latency, high-speed offering," Tassone said.
According to The MathWorks, the 15 leading U.S. asset management firms, the top 10 U.S. commercial banks and 12 of the 15 top hedge funds use MATLAB.
1. Alpha or market alpha represents the ability to achieve excess returns given the risk taken.
2. Operational alpha refers to a firm's ability to increase efficiency while reducing resource consumption.