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Content archived on 2024-05-14

High performance arbitrage detection & trading

Objective

This project will develop a realistic demonstration of the capabilities of applying HPC to detecting and trading arbitrage in high-frequency financial markets which will be of vital interest to market participants.

The roles of the partners in the project are as follows:

London Business School in collaboration with Reuters have already developed a set of pricing relationships that are often violated in the Foreign Exchange, Equity, and Fixed income market. A comprehensive set of zero-risk arbitrage conditions will be delivered for each market to the other partners to achieve the basic objectives of the HAT project.

Dresdner Bank, BNP, and Hughes Financial Analytics will take delivery of these zero-risk routines and, with each partner concentrating on one specific market, will gather market data. When parallelised routines become available, they will evaluate the areas where the new technology could provide them with added value.

The IT partners, Intrasoft and Parsytec will provide the hardware and software for i) connecting to Reuters datafeeds ii) checking for integrity iii) implementing in real time iv) logging violations and v) providing interfaces with alarm generators for risk management. The institutions will paper-trade the system for a period of one year and will assess the risks involved in using it.

Reuters will lead the work associated with defining user requirements. It will also take prime responsibility for the subsequent marketing of the HAT Project's results. The deliverables will be productised and exploited using Reuter's established marketing and distribution channels by offering a high performance product as an add-on service to Reuters' Markets 2000 and 3000 product-lines.

Fields of science (EuroSciVoc)

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Call for proposal

Data not available

Coordinator

Dresdner Bank Ag
EU contribution
No data
Address
Jurgen Ponto Platz 1
60301 Frankfurt
Germany

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Total cost
No data

Participants (6)