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MIFID II Algorithmic Trading

Introduction

This topic describes the changes to Trading Technologies to support MiFID II algorithmic trading requirements.

Algo Oversight Counsel

Trading Technologies has created an Algo Oversight Counsel (AOC) to refine, monitor and communicate efforts to support MiFID II compliance within our algorithmic trading tools and execution platforms. Comprised of leadership in the areas of Product Development, Engineering, Quality Assurance and Product Documentation, the AOC advises the operation and refinement of the following:
  • Trading Technologies’s processes and toolsets within the software development lifecycle to assure that newly developed algorithmic trading tools as well as enhancements made to existing tools both support MiFID II compliance.
  • Tools to allow administrators and designated users to monitor algorithmic trading activity within X_TRADER to identify and resolve and problematic algo behavior.
 

Software Development Lifecycle and Operations

These requirements set forth in MiFID II inform the execution of Trading Technologies's software development lifecycle in the development of new algorithmic trading tools, the enhancement and repair of existing trading tools as well as oversight of their operation. In particular, Trading Technologies's development process includes record keeping, authorization and oversight in manner consistent with MiFID II requirements and subjects all proposed new features and enhancements to a rigorous testing process during development and minors the operation of the development following deployment. Record Keeping, Authorization and Oversight Trading Technologies maintains a record of material changes to our algorithmic trading tools which includes the nature of the change, who approved the change, when the change was made, and by whom. This is accomplished through the following platforms:
  • The JIRA Project Management Platform maintains a record of project goals, actions assigned and executed as well as records of review and approval.
  • Git source control which maintains a record of previous versions of the software and the specifics of changes made to each individual file.
Testing Algorithmic Trading Tools New features and enhancements to TT Order Types as well as changes made to Autospreader Strategy Engine are submitted to a thorough testing process...
  • This is what we have to say about our testing process
  • This is what we test for

Administrator Tools: Monitoring Algorithmic Activity

  • Search for SSE and ASE orders down to the user using the Orders and Fills Window
  • Kill problematic orders
  • Set up alerts
 

TT User Setup

Permissions/Risk/etc.