Colt adds TraderServe to financial extranet:
Enables algo testing for MiFID II in Europe, Asia-Pacific and North America
London, 15 September 2015: Colt today announced the addition of TraderServe to Colt PrizmNet, a financial services extranet connecting providers of financial content to Capital Markets firms. TraderServe will provide access to Algoguard – the leading validation engine for MiFID II compliance – via PrizmNet from next month. The service will be available to all Capital Markets participants who require the ability to demonstrate compliance for algorithm testing under MiFID II, irrespective of location.
Nick Idelson of TraderServe commented, “The timing of delivery of Colt’s new extranet – Colt PrizmNet – is ideal in light of the requirements for testing that MiFID II brings and the timescales that go with those. Capital Markets firms will be able to directly access Algoguard and deliver their new regulatory obligations without any need for expensive and time-consuming builds. The obligation has long been known about, and whilst we await the release of the technical standards, firms should be preparing for this now.”
Algoguard allows capital markets participants to perform algorithm testing to comply with the requirements of MiFID II. The testing takes place in a realistic environment which responds dynamically to algorithms under test, based on statistical sampling of selected historical data with demonstrable independence and reporting. This can be used for the required testing following any significant change to the algorithm as well as the mandatory annual testing – without disclosure of the participant’s IP.
TraderServe will also offer Arena, a non-live testing service for trading venues that is isolated from live trading, and which includes disorderly market testing and stress testing in addition to existing conformance tests. TraderServe is currently working with trading venues to provide a testing platform for their members and participants, which will also be delivered via Colt PrizmNet. This platform will allow them to meet their new testing responsibilities.
“We’re pleased to welcome TraderServe to PrizmNet,” said Hugh Cumberland, solution manager for capital markets at Colt Technology Services. “TraderServe’s presence enhances PrizmNet’s value to Capital Markets firms internationally, as a means to become MiFID II compliant well in advance of the looming deadline. There are many different activities that will be imposed on firms using algorithms in their trading strategy. Anything that can help lighten the development overhead for our customers, especially in the coming 18 months, will be very welcome.”
Colt PrizmNet delivers market data, software and services via a single online portal, at guaranteed deterministic low latencies. TraderServe joins Aquis Exchange, JPX, Nasdaq and NLX, amongst others, as service providers on Colt’s PrizmNet extranet.
TraderServe is a software and appliance vendor and consultancy firm focused on real-time trading and complex problem applications for fund managers, traders, brokers, banks and trading venues including exchanges and MTFs.
Colt provides network, voice, and data centre services to thousands of businesses around the world, allowing them to focus on delivering their business goals instead of the underlying infrastructure. Customers include 18 of the top 25 bank and diversified financial groups and 19 out of the top 25 companies in both global media and telecoms industries (Forbes 2000 list, 2014). In addition, Colt works with over 50 exchange venues and 13 European central banks.
Colt operates across Europe, Asia and North America with connections into over 200 cities globally. It recently completed the acquisition of KVH – which now operates under the Colt brand – an integrated data centre and communications services business, with headquarters in Tokyo and operations in Hong Kong, Seoul and Singapore.