1. FRONT ARENA
Algorithmic trAding
Boost your Order Management with Algorithmic Trading
Front Arena’s Order Management solution comes with built-in support for Algorithmic
Trading. This means you can automate your execution without the usual penalties of
extensive system integration and reduced workflow efficiency.
All along the line, Front Arena gives you a proven algorithmic trading platform where you
can boost your customer service through:
• Sophisticated execution algorithms fully integrated into your order management workflow.
• Easy routing and no-touch execution.
• An intuitive development framework for creating your own algorithms.
Integrated workflow
Whether your order flow comes from manually
entered phone orders, FIX orders, order-
programs uploaded from Excel, or from DMA
orders, Front Arena algorithms can help
automate your execution.
Moreover, for Sales and Execution users, the
algorithms fit neatly into the workflow – before,
during and after execution. View pre-trade
statistical analysis before making decisions.
Execute the algorithm through a clear user
interface. Monitor and control the execution
in the order blotter. Post-execution follow
up against benchmarks such as Arrival Price
and VWAP.
VWAP configuration – set your own
configuration or go with built-in optimizations.
Full visibility for your Sales and Execution users – before, during and after execution.
www.sungard.com/nextgenerationtrading

2. www.sungard.com/nextgenerationtrading
Best Execution – Smart Order Routing Tick data and pre-trade analysis
Trade the primary market or use liquidity With built-in tick database and data capture,
seeking to exploit MTFs and dark pools. Front Arena bases its algorithm intelligence on
Front Arena’s integrated Smart Order Router statistical analysis of historical data. Tick data is
enables best execution across all venue types. gathered and analyzed market-by-market and
includes complete trade history. Aggregated
information is also gathered, such as:
Built-in algorithms
• Volume distribution patterns
Front Arena comes with a number of built-in
algorithms with new ones added continuously • Daily turnover
to serve emerging market needs: • Turnover for selected time periods
• VWAP • Average trade size
• TWAP • Average time between trades
• Market on Close • Historical volatility
• Arrival Price
• Program trading Advanced development tools
• Pairs trading
for creating custom algorithms
You can extend existing built-in algorithms
• Cross-border arbitrage
or build new ones from scratch. Front Arena
• Stock right/stock issue arbitrage
provides an Algorithm Developer Studio with
• Stop loss/lock in full flexibility to create new structures, events
• Basket arbitrage and actions. These make use of Front Arena’s
• Portfolio hedger extensive built-in library of trading and
analysis functions.
Parameter settings enable each built-in
algorithm to be adapted to different needs. This enables you to capitalise on the existing
For larger changes or for your own strategies structures and is the ideal creative
you can create custom algorithms. environment for developing and testing your
own successful trading strategies.
Optimization based on
Transaction Cost Analysis
Transaction Cost Analysis (TCA) can be used to
optimize execution tactics designed to achieve
the lowest risk-adjusted cost of execution.
The optimization automatically decides on
order slicing, order timing, price management
and even start and stop time. A large set of
factors are taken into account, including:
• Cost of market impact
• Execution urgency – cost of risk
• Transaction costs (exchange)
• Settlement costs
• Camouflaging techniques
• Pre-trade analysis
Algorithm Developer Studio – build or customize your own proprietary
algorithms to gain an edge.
© 2009 SunGard
SunGard, SunGard Front Arena and the SunGard logo are trademarks or registered trademarks of SunGard Data Systems Inc. or its
subsidiaries in the U.S. and other countries. All other trade names are trademarks or registered trademarks of their respective holders.