fintechbenchmark.com: The Fintech Benchmark

Algorithmic Trading

Provision and management of trading algorithms for order slicing, timing, and minimization of market impact.

Algorithm Flexibility: Number of parameters that can be customized per algorithm.
Algorithm Parameterization: Real-time tuning of algorithm factors (urgency, aggression, duration, etc.).
Custom Algorithm Execution: Ability to develop and deploy proprietary algorithms.
Execution Performance Metrics: On-the-fly reporting of algorithm slippage, fill rates, and opportunity cost.
Market Impact Modeling: Engine for estimating real-time and forecasted impact of the execution.
Minimum Slice Size: Smallest order size an algorithm can work with.
Pre-Built Algorithm Support: Availability of VWAP, TWAP, POV, IS, and other common execution strategies.
Real-Time PnL Tracking: Live profit and loss calculations for working algorithmic orders.
Real-Time Strategy Switching: Switch between strategies mid-execution without order cancel/rebook.
Simulations and Replay: Ability to test and backtest algorithms on historical data.
Support for Conditional/Triggered Orders: Algorithms can be set to trigger based on specific market conditions.

Audit, Reporting & Record Keeping

End-to-end tracking of all activity and flexible generation of reports for internal and regulatory stakeholders.

Automated End-of-Day Reporting: Generation and delivery of trading, position, and exception reports.
Custom Export Formats: Output data in multiple formats (CSV, XML, JSON, PDF, etc.).
Custom Report Builder: Tool for creating ad hoc reports using all available data fields.
Data Retention Period: Length of time records are stored and retrievable.
Full Audit Trail: Comprehensive logs of every user, order, and system event.
Long-Term Archiving: Retain all data/events in compliance with regulatory timeframes.
On-Demand Report Generation Speed: Average time to generate standard reports.
Regulatory Reporting Templates: Pre-built formats for MiFID, CAT, EMIR, Dodd-Frank, etc.
Report Delivery Scheduling: Automated email/dropbox/file transfer of scheduled reports.
Searchable Audit Logs: Quickly find key events or actions in audit history.

Integration & Connectivity

The system’s ability to connect with other trading, risk, back office, and market infrastructure.

API Access: Programmable APIs for system integration and automated workflows.
Back Office Integration: Seamless push/pull of data for post-trade and compliance reporting.
Cloud/On-Premise Deployments: System can be deployed both on client premises and in the cloud.
Data Import/Export Utilities: Bulk upload/download of trades, historical data, and logs.
Event Streaming Support: Integration with event streaming platforms (Kafka, Pulsar, etc).
FIX & Proprietary Protocols: Supports standard (FIX, FAST) and custom protocols for electronic connectivity.
Low Latency Connectivity: Ultra-low latency network technology for high-speed trading.
Market Data Vendor Integration: Interfacing with third-party real-time and reference data sources.
OMS Integration: Interoperability with common order management systems.
Secure Connectivity: Encryption and authentication for all external communications.
Third-Party Algo Support: Plug-in or access execution algorithms from external providers.
Trade Flow Throughput: Maximum sustainable trade messages per second.

Order Management

Capabilities that facilitate the intake, validation, enrichment, and routing of orders for execution.

Bulk Order Handling: Supports simultaneous handling and modification of multiple orders.
Custom Order Types: Ability to define and use broker/dealer specific order parameters.
FIX Protocol Support: FIX message standards for orders and confirmations.
Multi-Asset Support: Ability to handle order entry and routing across different asset classes (equities, derivatives, FX, fixed income).
Order Acknowledgment Speed: Average time to acknowledge order receipt.
Order Capacity: Number of orders that can be handled simultaneously.
Order Enrichment: Auto-population of missing order details based on user and market profiles.
Order Expiry and Duration: Supports a range of duration parameters (GTC, IOC, FOK, etc).
Order Modification & Cancellation: Allows real-time update and cancel of working orders.
Order Staging: Allows pre-submission review and adjustment of orders.
Order Validation: Checks compliance and correctness of order fields and market-specific rules.
Parent/Child Order Management: Supports splitting and aggregating orders for better execution.
Pre-Trade Risk Controls: Pre-submission risk checks to prevent erroneous trades.
Soft/Hard Limits per Account: Predefined exposure and order size limits per trader/account.

Performance & Reliability

Operational performance, uptime, scalability, and disaster recovery features.

Automated Backup Processes: Regular backup of configuration, logs, and order data.
Automated Monitoring: Health checks and real-time alerts for resource utilization and system errors.
Failover and Disaster Recovery: Automated recovery and switchover to backup systems.
Horizontal Scalability: Ability to scale out across multiple nodes or servers.
Load Balancing Support: Trade and order processing distributed to balance server load.
Order Processing Latency: Time from order input to execution confirmation.
Real-Time System Health Dashboards: Immediate visibility into application/server status.
Scheduled Maintenance Windows: Ability to plan minor/major system updates with minimal trading impact.
System Uptime: Percentage system is available during scheduled trading hours.
Throughput Capacity: Maximum sustained number of trades/orders per second.

Real-Time Data & Analytics

Monitoring, visualization, and analytics on order status, execution quality, and real-time market data.

Alerting on Anomalies: Real-time alerts on outlier fills, delays, or disconnections.
Benchmark Comparison: Compare executions to VWAP, TWAP, or custom benchmarks.
Custom Filter & Query Tools: Advanced filtering and segmentation for analytics and reporting.
Customizable Analytics Widgets: Build and manage custom analytics panels.
Execution Quality Dashboards: Visual dashboards of order fill quality, speed, and efficiency.
Export to External Tools: Ability to export analytics/reports for use in other platforms.
Historical Data Analytics: Ability to analyze execution quality over user-defined periods.
Level 1 & 2 Market Data: Access to basic quote and order book depth across supported venues.
Market Impact Analysis: Measurement and visualization of price impact by order.
Real-Time Data Refresh Rate: How often data on dashboards updates.
Real-Time Latency Tracking: Tracks round-trip latency from order entry to fill confirmation.
Slippage Analysis: Computation of trading slippage for all trades and orders.

Risk Management & Compliance

Real-time controls and regulatory oversight to ensure safe and compliant execution.

Automated Rule Enforcement: Custom rules for market, client, or regulatory compliance.
Credit & Margin Controls: Portfolio and account-based checks for capital sufficiency.
Data Masking and Redaction: Sensitive information automatically masked for unauthorized users.
Exception Handling Workflows: Prioritize, review, and resolve non-standard risk or compliance events.
Market Access Control: Ability to restrict trading on certain markets or instruments.
Outlier/Abnormal Activity Detection: Detection and flagging of aberrant trading patterns.
Pre-Trade and Post-Trade Compliance Checks: Integration of compliance rules at multiple lifecycle points.
Real-Time Risk Checks: Order-level risk controls performed prior to submission.
Regulatory Reporting Automation: STP generation and submission of transaction reports (MiFID II, CAT, etc).
Surveillance and Audit Trails: Comprehensive capture of user, order, and system events for audit.
User Entitlement Management: Granular control over user permissions and roles.

Security & Data Protection

Protection of sensitive data and robust controls to prevent unauthorized access.

Audit Logging: Immutable logs track all actions and changes.
Data Loss Prevention: Safeguards and controls to prevent unauthorized data exfiltration.
Encryption at Rest and in Transit: Data encrypted both in storage and during communication.
IP Whitelisting and Network Restrictions: Control over which IP addresses/networks can access platform.
Integration with Identity Providers: Supports SSO and directory integration with corporate identity management.
Multi-Factor Authentication: Supports MFA for all user logins.
Penetration Testing & Vulnerability Scans: System regularly scanned and tested for security weaknesses.
Role-Based Access Control: User access enforced at role/group level.
Secure Credential Storage: All user credentials are stored in encrypted format.
Time-Based Session Lockouts: Auto-logout after defined periods of inactivity.

Smart Order Routing

Tools and logic to direct orders to the most optimal trading venues and liquidity pools.

Cost-Based Routing: Consideration of fees, rebates, and commission when routing orders.
Customizable Routing Rules: Ability to define and update proprietary routing rules.
Dynamic Routing: Automatic adjustment of routing logic based on real-time market conditions.
Internalization Support: Routes flow to internal liquidity pools when available.
Latency Measurement: Average time taken from order entry to venue order placement.
Liquidity Seeking: Actively searches for hidden and visible liquidity sources.
Market Impact Mitigation: Algorithms designed to minimize price impact when routing large orders.
Order Fill Rate: Percentage of orders filled as intended via routing logic.
Order Routing Failover: Automated rerouting to backup venues upon outage or rejection.
Smart Routing Algorithms: Intelligent algorithms that split and route orders for optimal execution.
Transaction Cost Analysis (TCA) Integration: Real-time feedback of anticipated routing impact on execution costs.
Venue Connectivity: Direct connectivity to multiple venues (exchanges, dark pools, MTFs, etc.).
Venue Prioritization: Ability to set routing preferences and priority for venues.

Support, Maintenance & Vendor Services

Vendor-related features for onboarding, maintenance, support, and ongoing service quality.

24/7 Technical Support: Round-the-clock access to vendor's technical assistance.
Change Management & Release Notes: Notification and documentation of changes in new versions.
Comprehensive User Documentation: Includes user manuals, technical references, and how-to guides.
Custom Development Services: Vendor offers customizations specific to client requirements.
Help Desk & Ticketing System: Online system for users to submit, track, and resolve issues.
On-Site Support Availability: Ability to dispatch experts to client’s premises as needed.
Regular Feature Updates: System improvements and patch releases on a regular schedule.
Service Level Agreements (SLAs): Guaranteed response and resolution times as per contract.
Training Programs: Onboarding and ongoing training options for staff.
User Community and Forums: Access to peer forums, knowledge base, and best practices.

User Interface & Usability

Features that enhance workflow efficiency, simplify navigation, and provide a user-friendly trading experience.

Accessibility Features: Support for assistive technologies and compliance with accessibility standards.
Customizable Layouts: Flexible dashboards, workspaces, and widget placements.
Dark/Light Mode: Switch between UI color schemes to reduce eye strain.
Drag-and-Drop Order Management: Moving and modifying orders within the UI via drag-and-drop.
Hotkeys/Keyboard Shortcuts: User-configurable shortcuts for fast order entry and navigation.
Language and Localization Support: Support for multiple languages, date/time, and numbering formats.
Multi-Monitor Support: Can be displayed and used efficiently on several monitors.
Notifications & Alerts: Popup, email, and desktop alerts for key events.
Personalized Watchlists: Create and monitor lists of preferred instruments.
Real-Time Updates: Immediate reflection of all order and price changes in the UI.
Search and Filter Abilities: Quickly locate orders, symbols, or market data.
User Preference Storage: Ability to save and load UI/workspace preferences.

Execution Management Systems (EMS) features explained

for Trading Desk