We all know that hedge funds and trading floors in virtually every financial institution worldwide are having difficulties these days. As investors move into cash, redemptions are forcing these financial institutions to cut costs (since these firms get a cut of the funds managed).
Traders will tell you that their trading strategy (encoded into algorithms) is the secret sauce that differentiates her/him from other traders. These trading strategies/algorithms are executed on a trading platform, like the open source Marketcetera Trading Platform. Marketcetera allows institutions to spend more time and resources on what differentiates them from the other guys, the trading algorithms, rather than on common artifacts across firms, a trading platform.
Marketcetera has built a modular platform with the common capabilities that institutions require. The open source nature of Marketcetera (GPLv2 or commercial license) allows institutions to tweak their trading platforms for competitive advantage, while starting from a solid base.
Marketcetera is finding that the majority of their users purchase a support contract, which is understandable when considering the business. Marketcetera counts over 500 community members and has a growing number of support and professional services customers.
When asked how Marketcetera can keep up with closed source Trading Platform vendors, especially from a late start, Marketcetera points to its use of OSS. Marketcetera uses Eclipse RCP, ActiveMQ, various Apache utilities and the Spring Framework. Additionally, Marketcetera allows customers to control of their own platform vs. waiting for one of the two major trading platform vendors to make changes to their respective products. The team intends to GA v1.0 in 4Q08.
CEO Graham Miller and CTO Toli Kuznets explained that control maximization and cost minimization are the two key drivers of Marketcetera adoption.
While many of you aren’t going to run out and download the Marketcetera Trading Platform, you may know someone on Wall St. in need. Point them towards Marketcetera!