News out today that Marketcetera has announced general availability of the new Marketcetera Automated Trading Platform V1.0.
Some of you will remember that I’d written about Marketcetera last summer. The Marketcetera team was working on delivering a common trading platform that traders, hedge fund managers and broker/dealers could use in place of custom trading platforms. Since these users generate profit based on their trading strategies, and not necessarily the platform that these trading strategies run on, why not use a common off the shelf platform? And if the platform was modular and extensible, then financial companies could recreate any features that their old proprietary trading systems offered.
Peter Algert, co-founder of Algert Coldiron Investors, wrote an article at BusinessWeek about his company’s need for just what Marketcetera was working on:
“After headcount, a typical hedge fund’s largest expense item is technology. Much of that expense goes to the trading systems that we use. Let me tell you a secret: Our “secret sauce” is our trading strategies—it’s not our systems for trading. These platforms can cost even a smaller fund like mine hundreds of thousands or even millions of dollars a year. Look, I just need a trading platform that executes our strategies. The software needs to connect to other systems that our different brokers and exchanges use and complete the trades driven by our increasingly automated strategies. This trading platform market is probably a $1 billion annual industry today. “
So far, Marketcetera’s open source project has attracted over 10,000 downloads and more than 20 production deployments.
It’s too bad that you have to register to download the open source release.