AI quantitative trading (a) - Introduction to quantitative trading
First, quantitative trading Introduction
1, quantitative trading Introduction
Quantitative trading based on mathematical models for trading of thinking, based on historical data, mathematical modeling, statistical analysis, program design as a tool, the use of computer technology in the sea from a large variety of selected historical data can bring a large excess returns the probability of an event in order to develop profitable trading strategies.
2, quantitative trading features
(1) discipline. Quantitative investment decisions are made based on the model, the model simulations thousands of times to achieve high fault tolerance.
(2) systematic. Quantitative trading data analysis has a very comprehensive data evaluation system, we will consider market in many ways, such as: other macro cycle, digital currency valuation, turnover, earnings quality and market sentiment.
(3) probabilistic. Through a combination of mathematical models and methods, estimates and under what circumstances the highest profit rate, appropriate positions can Opening.
(4) arbitrage ideas. Using mathematical analysis and valuation of depression combined with computer technology to find, buy low and sell high, to earn the middle of the price difference, yielding economic benefits.
3, quantitative trading advantages
(1) investment performance and stability, low retracement. Quantitative trading from historical data mining is expected to continue in the future repetition of the history of the law and use; rely on a set of quantitative trading shares to win, rather than a stock or a few wins.
(2) be able to overcome the weaknesses of human nature, to achieve a rational investment. Help investors remain rational in the case of easy irrational; therefore the market overreacted, irrational when timely grasp the opportunity.
(3) The information processing capability. Quantitative trading using computer technology for mass data processing, information processing ability.
4, the application of quantitative trading
(1) Statistical arbitrage
The main idea is to identify statistical arbitrage relevance of some of the best investment products, then find each pair of long-run equilibrium relationship (cointegration) investment products, when the spread of certain varieties ( equation cointegration residuals) Jiancang deviates to a certain extent, be bought relatively undervalued species, the opposing shorting overestimated species, and so the spread regression equalization profits.
(2) algorithmic trading
the main ideas of algorithmic trading is to predict the future ups and downs of the quantization formula is a trend trading strategy prediction algorithm has to be wrong, is a high-risk transactions, but profit margins, market capacity as well.
(3) high-frequency trading
HFT short holding period, through a large number of transactions and fast withdrawals, average profit per transaction is small, but the risk is small.
Second, quantitative trading mode
1, Introduction to quantitative trading mode
According to the concept of mathematical models and ways to use computer technology, quantitative trading can be subdivided into automated trading (Automatic Trading), quantitative investment (Quantitative Investment), program trading (Program Trading), algorithmic trading (Algorithm Trading) and high frequency trading (High Frequency trading). Different emphases quantitative trading methods are different, quantitative trading techniques at different stages of product development, but also the different user groups of different quantitative trading transactions.
2, automated trading
Automated trading refers to curing technology analysis of investment into the computer model can be understood, technical specifications, computer programs automatically generate investment decisions based on changes in the market and put into execution of transactions. Automated trading is an automated technical analysis of investment, investors can avoid the psychological changes and mood swings, strictly adhere to established policies, is the basic quantitative trading.
3, quantitative investment
Quantitative investment generally takes an investment to study the structural causes of the financial markets through a variety of asset prices probability theory, calculus and other advanced mathematics tools to decide. Quantitative investment for investors demanding mathematical ability, it is generally devoted to the quantitative investment funds and investment companies prefer to recruit PhD in mathematics, physics and other sciences.
4, program trading
Program trading is easy to use program post, the timing of the transaction, trading position, stop loss and profit profitability criteria may be included in the program can also be independent of the external program, the program itself is only a way of execution.
5, algorithmic trading
Algorithmic trading refers to trading decisions are made based on one or more algorithms (algorithm), the algorithm is the basis for the transaction. Algorithmic trading can be executed manually, can be automated. If you use a program to execute the transaction, it is programmed algorithmic trading.
6, high-frequency trading
High-frequency trading is per transaction from Open to open only a short time interval, generally ranging from ten minutes to several microseconds. HFT main purpose is to profit by short-term market price fluctuations. Whether it is trend following trading or arbitrage trading, as long as the frequency of, it can be called high-frequency trading. Artificial difficult to meet the standards of high-frequency trading, it is generally the transaction by the program: set up the algorithm, the policy enforcement orders by the software.
7, Strategic Transactions
In the area of investment, the general custom to buy and hold, the value of investment, growth and investment strategy called, and the inertia, reverse the trend, support resistance, and so called the strategy. Due to technical analysis-based strategies, and deal-making in the history of computerized analysis, technical analysis went fairly early, so accustomed to multi-finger Trading Strategy on trading strategies. In general, the trading strategies called strategy, the trading strategy called trading system.
Third, mainstream quantitative trading platform
1, quantitative trading platform Introduction
Quantitative trading platform is able to meet different quantization trading platform respectively, asking them to market and basic data from trading systems, trading and execution, policy development and operation of three major aspects necessary to achieve large and wants to be deep and fine.
The current quantitative trading platform from several developing language, technical architecture, system architecture, strategic direction, transactions, etc., into the low-end and high-end quantitative trading platform.
2, the low-end quantitative trading platform
Commonly used low-end platform technology architecture is that investors use the client software platform provider, using the Internet connection market access and basic data server platform provider or financial brokerage companies, strategic investors run locally after triggering , traded by brokers ordinary trading desks.
Restricted policy script parsing and execution efficiency, technology architecture, the low-end platform to support certain limitations complex system architectures of multi-species, multi-period, multi-account, multi-market, multi-strategy, complex financial toolkits have. General system implementation process is: after receiving the investor's strategy in the local market data, according to Strategy simple calculation of trigger conditions, simple account positions, capital calculation and management, and then issued a trading direction, quantity and price instructions, automatic transaction.
The low-end quantitative trading platform only support low complexity scripting language policy logic, generally only load Technical indicators to quantify trading automated trading, program trading, etc. on the chart.
The low-end platform for investors to trends, trends on the market and the anti-trade logic less demanding strategy, is currently on the market, individual investors the most widely used class of a popular quantitative trading platform.
Domestic low-end quantitative trading platform Chi-win mainly Mandarin program trading, trading pioneer, decision-making pyramid trading system of money & multicharts, financial security wing terminals.
(1) Mandarin win Chi program trading platform
Mandarin win Chi Mak model using technical indicators language development, driven trading orders after generating buy and sell signals. In the quantitative model research and development, won wisdom provides a time series of historical market data for all multi-cycle of domestic stock and futures varieties and recent TICK data, while providing a wealth of market functions, partial functions of accounts and transactions and a number of statistical functions with in policy development, but also it provides a wealth of strategy backtesting report term strategy as the basis for performance evaluation. In terms of quantitative trading, won wisdom to support up to 24 varieties of multi-threaded standalone program trading, while using single fine components, to achieve some of the functions of algorithmic trading. As a result of the client's technical architecture, although functional modules to achieve a win-chi high-frequency trading, but in practical applications, high frequency trading recommendations hosted at the Mandarin room. At this stage, won wisdom in a programmed simple and cost performance in the low-end quantitative trading platforms have an edge.
(2) the transaction pioneer program trading platform
Trading Blazers (TB) using language model TBL development strategy, account status and chart positions drive buy and sell signals based on trading orders. In terms of R & D model to quantify, TB provides historical market data multi-cycle domestic futures and recent TICK data; provides a more comprehensive market data function, account and transaction functions, statistical functions for policy development; provides a wealth of strategy backtesting as a strategy based on performance evaluation report items. In terms of quantitative trading, a single TB terminal supports 20 to 30 varieties of single quotes and charts concurrently receiving transaction, but due to the technical architecture of the client, its lack of support for high-frequency and more complex strategies. At this stage, TB do better marketing, more futures companies, the higher quantitative trading platform's market share in the low-end.
(3) pyramid Decision trading system
pyramid Decision trading system (hereinafter referred to as pyramids) using VB script development strategy model of language, the use of more complex account functions and transaction functions money management, you can either use a chart point of sale, but also the use of non charts trading judge orders driven trading. In terms of R & D model to quantify the pyramid provides historical market data and domestic stock and futures TICK data, you can also use an external disk data; provides a more comprehensive market data function, more accounts and trading functions, statistical functions for strategy development, and also supports external statistical databases and professional statistical analysis software Lib library to do extension; providing a wealth strategy backtesting report term strategy as the basis for performance evaluation. In quantitative trading, in addition to supporting chart-driven program trading, also be basket trading, algorithm trading and more complex hedging transactions, but is also subject to technical architecture limitations of the client, its high-frequency trading, the whole marketing strategy more complex strategies supported transactions is not enough. At this stage, futures companies pyramid cooperation gradually increased, a higher market share in the low-end quantitative trading platform.
(4) of money multicharts automated trading
Of money multicharts automated trading system (MC) uses power language development strategy model of providing money market and transaction gateway, multicharts implementation strategy development and execution platform. In terms of R & D model to quantify, the domestic futures market history and TICK market over a period of time provided by money. MC TradeStation inherited the wealth of libraries and library policies, as well as the development of convenient features, provides a more complete backtesting and performance evaluation system, provides a comprehensive assessment of the policy of research and development. In terms of quantitative trading, MC only supports programmatic and automated trading, quantitative trading models for high-end support is not enough. Because MC into the country soon, quantitative trading platform in the low-end market share is not high.
(5) An wing financial terminal program trading
purpose scripting language developed trading model Ann-wing financial terminals (hereinafter referred to as security wing) using technical indicators, automated trading charts drive, is the independently developed-country stocks and futures by the brokerage automated trading tools. Currently security wing provides a history of domestic stock and futures market can be a relatively simple hedging transactions and stock charts, futures, program trading tools free of charge. Although the security wing can only be traded with the Securities trading channel, but it marks the quantitative trading domestic equities and futures has been elevated to a comprehensive development phase.
3, high-end quantitative trading platform
High-end quantization platform in addition to supporting complex script language policy logic, but support the direct use of C ++, JAVA and other development languages to implement complex policy logic, usually in pursuit of efficiency, do not use interface displays graphs, and multi-process, multi-threaded approach to automated trading, program trading, algorithmic trading, even in the pursuit of perfection, using hardware technology to quantify high-frequency trading and other transactions.
High-end trading platform commonly used technique is to use architecture-based servers execute strategies, and the prices of forwarding path using a minimum speed, the depth of the market, trading channel using a dedicated, direct trading channel transactions. Quotes delayed transactions and require the lowest possible.
High-end trading platform located in the asset management, strict distinction between strategy development and operational execution strategy in two phases on the system architecture. For the policy development stage, we need more variety, more cycle, multi-account, multi-market trading support, multi-strategy, complex financial engineering package in order to implement complex logic strategy; strategies for the implementation phase of operations, systems architecture to ensure a variety of risk control , emergency response, and smooth trading strategies effectively implemented. In addition to system implementation process to meet the requirements of the transaction itself, but also to meet the agency's own business processes and specifications, as well as the requirements of regulators.
High-end trading platform for institutional investors trend, arbitrage, hedging, trading and high frequency on the market requirements of high policy logic complexity. With the acceleration of the domestic financial market innovation, institutional investor demand and potential demand for high-end trading platform rose rapidly.
Domestic high-end quantitative trading platform mainly Progress Apama, Long soft DTS, GTA quantitative investment platform, software platform quantify days - Year of STP, program trading Yi Sheng, Sheng Li SPT platform.
(1) Progress Apama
Apama EPL, and the use of JAVA language development or custom policy model, trading, risk control and other operations through quotes, news and other drive CEP engine. In terms of R & D model to quantify, Apama authorized to use third-party market, providing access to various market conditions and a variety of interfaces OTC interface, you can access the historical time series data of the domestic stock market and the futures and multi-cycle TICK data; providing a wealth of financial toolkit for complex policy development; provides a convenient studio development tools, you can quickly develop and customize sophisticated strategies; providing 10,000 times the acceleration testing strategy backtesting, you can easily customize the test report. In terms of quantitative trading, Apama provides 1.5 million pen / sec concurrent transaction processing power, high-frequency trading, algorithmic trading. Apama high-end parallel processing capabilities, so that the entire market of concurrent multi-species arbitrage, hedging and other trading strategies and real-time risk control strategy can be executed at high speed. At this stage, Apama account for a large share of the import market, and information management, brokerage business in the international investment bank. Beginning in 2012, Apama and gradually expand the domestic business, several large companies have begun to securities and futures formally launched the promotion-related quantitative trading and Apama applications.
(2) Long soft DTS
DTS using LUA scripting language policy model developed by platform provides historical and real-time quotes, basic information data, macro data statistical analysis, to achieve the investment research and trading. In terms of R & D model to quantify, DTS can use its own platform data source, you can also access third party data sources. DTS also provides some financial toolkit to develop complex strategies, backtesting and performance evaluation. In terms of quantitative trading, DTS provides scalable server-side technology architecture that ensures high speed and high concurrency strategy execution, in its program trading, quantitative trading, algorithmic trading, hedging and arbitrage transactions have practical applications.
(3) GTA quantitative investment platform
GTA quantitative investment platform is divided into research platform (QIA-Lite) and trading platform (QRC), using the form matlab toolbox matlab seamlessly compatible development environment, implementation strategies trading by the trading platform. In terms of R & D model to quantify, GTA investment research platform to use their own source of market fundamentals data, high-frequency data, quantitative factors database, is fully compatible with all matlab function to achieve a model of development and back-tested. In terms of quantitative trading, which supports the counter mainstream domestic securities and futures, has practical application in program trading, algorithmic trading stocks and futures, etc.
(4) days Soft quantitative research and trading platform
day soft quantitative research and trading platform soft-specific language development strategy model TSL day by day the transaction gateway software, to achieve the implementation of quantitative trading. In terms of R & D model to quantify, using historical and market high-performance data warehouse TICK provide basic information and data, macro data and other data sources, while providing 7000 kinds of open-source libraries, for policy development, backtesting, performance analysis. In terms of quantitative trading, the basic realization of the quantitative trading automated trading, program trading, algorithmic trading and so on.
(5) STP-Year
- Year of quantitative trading platform JAVA language, through a customizable template development strategy model, high-frequency trading. STP through a unified development and information management operating platform, strategy development, backtesting, risk control and information management operations. Due to the use of high-speed counter transaction interface, mainly for its high-frequency arbitrage trading patterns of the user program trading and so on.
(6) Yi Sheng program trading platform
Yi Sheng program trading can adopt Language language development strategy model similar to Easy, implement program trading and arbitrage trading, also can easily hold counter offer of the stock market and trading API, using C ++ to develop external applications, to achieve futures, stocks more complex quantitative trading. Quantitative models in R & D, EL development model Yi Sheng programmed to provide, similar to the low-end of quantitative trading platform, but in real-time rate quotes, transactions and account functions and fine processing, to achieve high-end quantitative trading platform requirements. In terms of quantitative trading, Yi Sheng counter market and transaction speed has certain comparative advantages, quantify application trading platform supported mainly futures program trading, automated trading, hedging and arbitrage trading.
(7) SPT platform Sheng Li
Sheng Li SPT financial software platform, using the C ++ language and custom template development strategy strategy development, independent operations and back-test simulation and real trading platform. Although not much application SPT platform in the country, but with its one million strokes / sec concurrent processing capability of the stock market, milliseconds latency trading, notably in quantitative trading platform. SPT provides a number of policy templates, can easily implement program trading, arbitrage and hedging transactions, algorithmic trading, high frequency trading.
Fourth, the mainstream quantitative funds
1, bridge water fund
Bridgewater hedge fund (Bridgewater Associates) was founded by Ray Dalio in 1975, is headquartered in Connecticut, USA, currently has a total of about 1,500 employees. Bridge Water Fund is a hedge fund evergreen, perennial ranking in the forefront of the world's hedge funds or even top the list, in charge of about $ 150 billion, mainly by customers institutional clients, including foreign governments, central banks, corporate and public pension Kim, University of charitable donations and funds.
Bridge Water Fund has a unique investment philosophy, with global macro strategy-based, all-weather investment strategies proposed, alpha and beta strategies separation theory, one of the all-weather investment strategy emphasizes different types of portfolio allocation in different macroeconomic period, so as to achieve consistently profitable state. Bridge Water Fund to obtain a positive return in the 2008 financial crisis, and still perform well in 2009 after the collapse of Lehman Brothers.
June 2018, the Fund completed bridge water in China Securities Investment Fund Association registered private equity fund managers, private equity managers officially became a territory, marking its private equity business in China has been officially launched.
2, AQR Capital Management
AQR is a former Goldman Sachs partner and portfolio manager Asineisi 1998 co-founder of a hedge fund quantify, headquartered in Greenwich, Conn., Now under management of $ 159.2 billion, the number of employees reached 693 people, in Boston, Chicago , Los Angeles, London and Sydney have set up offices.
AQR customers mainly to institutional investors, such as pension funds, insurance companies, mutual funds, sovereign wealth funds.
AQR to find markets through algorithms and computer models of temporary invalidity and benefit from its wide range of investment strategies, including long-short, arbitrage, equity, global macro, insurance, absolute return, momentum, and more strategies. AQR's primary objective is to value stocks and momentum stocks; the choice of investment portfolio, AQR emphasizes the combination of fundamental and quantitative analysis and bottom-up stock selection; three core investment principle is a systematic approach, diversification and alpha skills.
AQR Capital in the 2008 financial crisis suffered heavy losses, its flagship fund "absolute return fund" loss by more than 50%, while assets under management fell to March 2009 from $ 39.1 billion in September 2007 peak of way the $ 17.2 billion.
3, Millennium Management Company
Millennium Management (Millennium Management LLC) in Canada贝尔兹伯格wealthy family and other investors helped founded by England and Germany in 1989, the initial asset size of $ 35 million, currently under management of $ 33.6 billion, with more than 2000 employees in the United States, Europe and Asia with offices.
Millennium investment approach attaches great importance to risk management and more biased in favor of certain risks (such as low Sharpe ratio) have a higher income, the risk-averse investment philosophy to become the team's regular trading. Therefore, the transaction management requirements Millennium team to have smaller gains in money of the day, there is a smaller loss in the days of losing money, more money for day.
Millennium Management's investment strategy focuses on diversification and globalization, including relative value, statistical arbitrage, merger arbitrage, fixed income and commodities, in very diverse asset classes, industry-owned commodities, investment targets belong to other aspects, including investment targets domestic and international equity, debt, currency, futures, forwards, options and so on. Millennium Management attaches great importance to the use of high-tech, quantify its subsidiary departments to allow amateur traders commit algorithm for system-specific transactions.
4, Castle Investment Group
Castle Investment Group (Citadel Investment Group) was founded by Kenneth Griffin in 1990 and headquartered in Chicago, North America, Asia, Europe, with offices, currently castle asset management companies under management in excess of $ 24 billion, the company has more than 1400 employees, Castle investment Group's clients include sovereign wealth funds, pension funds, university donations.
Castle investment approach by the rigorous fundamental research, quantitative analysis of high-end and a proven technology platform jointly drive. Investment Principles efforts, scenario planning and duplication. Investment strategy focusing on the major asset classes on some of the world's largest financial markets, including equities, credit, quantitative strategies, commodities, fixed income and macro.
5, Soros Quantum Fund
Soros Quantum Fund (Soros Fund Management) was founded by George Soros on into 1969, once the hedge fund industry leader, headquartered in New York, has now been transformed into a family office, managing more than $ 20 billion.
Quantum fund investment targets include equities, fixed income and foreign exchange, money, commodities, private equity funds and venture capital funds worldwide, in transportation, energy, retail, finance and other industries have a lot of investment.
Founder of Soros had defeated the Bank of England in order to check the pound, Hong Kong dollar and attacks on the Thai baht triggered the Asian financial crisis.
6, Motomori capital
Motomori capital (Winton Capital Management) was founded by David Harding fund managers in 1997, currently manages more than $ 30 billion, and employs 330 people in 25 countries, is the world's largest futures investment fund.
Motomori capital is a systematic investment company, the use of scientific methods to trade, through mathematical modeling and statistical analysis of historical data to find opportunities for profit.
7, German investment Shao
De Shao (DE Shaw) was founded by David E. Shaw, founder in 1988, the company reached $ 50 billion under management, number of employees over 1300.
Founder David E. Shaw is a teacher at Columbia University's Department of Computer, served in government positions such as science and technology consultant, proficient in IT and related technologies, the company attaches great importance to quantify the skills used in investment, but also developed a sophisticated computer technology with in the transaction.
Founder Dr. David E. Shaw, Stanford after graduation quickly got the Columbia University faculty, then added quantify department of Morgan Stanley. In 1988, the company lost due to internal struggles and the creation of German Shao Fund, and the use of high-frequency trading technology was rare on Wall Street turned out to take advantage of market ineffectiveness of shearers market.
In 2004, to achieve financial freedom David E. Shaw earned his wealth in the area of investment into quantify their field of computational chemistry Bank, set up DEShaw Research, the recruitment of a number of basic science Dr., use three years to develop Anton first generation, faster than the average of 10,000 times a supercomputer, the team continued gains world-renowned scientific journal papers published opportunities, academic reputation has been rising.
2015, David E. Shaw personal wealth has reached $ 4.1 billion.
April 2019, the German Shao Investment Management (Shanghai) to complete registration in China Securities Investment Fund Association, officially entered the Chinese market.
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8, Renaissance
Renaissance Technologies (Renaissance Technologies LLC) by James - Simmons (James Simons) was founded in 1982, currently manages more than $ 65 billion, including its only open to internal staff Medallion Fund (Medallion Fund) as well as to outside investors open RIEF (institutional Equities Fund) and RIDA (institutional pluralism alpha Fund).
James Simons in 23-year-old PhD in mathematics at Berkeley, University of California, 24-year-old served as lecturer in the Department of Mathematics at Harvard University, 30-year-old to Stony Brook University as math department, and pure mathematical research for eight years, during which the famous Chinese mathematician Chern co-founded the mathematics and physics profound impact Chern-Simons theory.
In 1976, James Simons won the crown of the mathematical community - the nation Veblen (Veblen) award, mathematics achievement of their personal career reached its peak.
On the financial front, James Simons invention unique gecko-investment law, that is the short-term directional prediction in the investment, while many varieties of trading, relying on large number of transactions completed in the short term to make a profit, that the transaction should be like gecko, usually lying motionless on the wall, once the mosquitoes quickly be eaten, then calm, wait for the next opportunity.
From 1989 to 2009, Medallion Fund's average annual returns of up to 35%, compared with the same period the S & P 500 Index average annual return of more than 20 percentage points, compared with "financial predators" Soros and the "Warren" Buffett's performance Trader They are higher than 10 percent. Even in 2007, the subprime mortgage crisis, the return rate is still as high as 85%.
Mathematical model Medallion fund mainly through the statistical historical data to find out the mathematical relationship between various indicators of financial product prices, macroeconomic, market indicators, technical indicators change, find small profit opportunities currently exist in the market, and by leverage fast and massive trading profits. Medallion fund portfolio now contains over one thousand kinds of global stock markets and other investment targets, the model for the main investment targets price of government bonds, futures, currencies, stocks and other constant monitoring and make buy or sell instruction.
9、Two Sigma
Two Sigma was founded by founder John Overdeck and David Siegel in 2001, currently under management reached $ 50 billion, accounting for more than two-thirds of R & D staff, over 60 per cent of employees no financial background.
Two Sigma follow the principles of technology and innovation in machine learning, decision making under the guidance of distributed computing, and always research the latest technology to make better decisions. Is the founder of investment in the field of technology leader in computer-driven, trading system development to field-based model has more than 40 years of experience, John Overdeck Wall Street quantitative funds godfather, effective love Germany Shao, founder of DE Shaw's investment will quite attainments in mathematics and statistics; David Siegel good at computers, artificial intelligence; companies with huge amounts of data, world-class computer systems and high-end financial experts to complete the transaction model, but also the vision to use technology to optimize investment, management risk.
September 2019, Two Sigma announced that a subsidiary Teng Investment Management (Shanghai) Co., Ltd. has been successful in China Securities Investment Fund Association (AMAC) registered as a private equity fund managers.
V. PB mainstream institutions
1, PB Profile
Main brokerage business (Prime Brokerage, referred to as PB), as an agency brokerage business, means that brokers provide transaction settlement for professional investors, asset custody, back-office operations, research support, leveraged finance, fund raising and other one-stop integrated financial service.
2, Goldman Sachs Group Inc.
As the largest foreign PB services, Goldman strong commitment to technology and innovation, leading the development of its many has become the industry standard practices and technologies. Goldman Sachs has been a pioneer trading and electronic connection systems, its electronic trading platform REDIPlus before the transaction analysis, the implementation of value-added services, algorithmic trading, portfolio trading and post-trade analysis program has a global leadership position. Among them, Goldman Sachs Algorithmic Trading (GSAT) is a set of algorithms global program involving a variety of assets, including stocks, futures, options and synthetic derivatives, by trading with GSAT, customers also have access to the resources of Goldman Sachs, including before and after the transaction during the trading and analysis, transaction cost analysis and execution strategy.
In addition to trading tools, Goldman Sachs on the business are vigorously promoting the use of technology innovation and business development. In the foreign exchange and derivatives trading, Goldman Sachs and unique proprietary data modeling technology allows customers to calculate the margin on portfolio basis, to efficiently manage risk and optimize the use of capital, and internal Goldman Sachs technology platform simplifies trade confirmations, portfolio reconciliation and management. In terms of hosting the settlement, Goldman Sachs has developed a powerful, wide range of global clearing and settlement network. Goldman's platform provides a complete set of tools that allows customers to span multiple asset classes and currency trading in a single integrated account. In terms of margin trading, Goldman Sachs Using the proprietary, leading-edge technology portfolio risk modeling tools to assess clients' portfolios and strategies of financing options. In reporting services, institutional clients of Goldman Sachs network allows customers online access to global online resource Goldman Sachs, including investment research trading ideas, investment opportunities, market insight, personalized and other resources. Meanwhile, Goldman Sachs has developed a high degree of customization of integrated reporting platform, providing tailor-made covers many products and markets business solutions to customers.
3, Interactive Brokers
Interactive Brokers (Interactive Brokers, IB) is a low transaction cost and technology-driven business and the well-known US online brokerage, institutional and individual customers each half. PB IB business is fast in recent years to open up the field. IB with the PB service two core competencies: one developed by IB IB SmartRouting SM intelligent trading system, the other is for IB absolute advantage in cost control, IB may choose to provide free hosting services.
Affected by Basel III, MiFID II and other regulatory policies, the main broker Goldman Sachs, Morgan Stanley and other banks controlled by strict liquidity management constraints, was forced to raise entry standards and customer service pricing. IB is accepted large main hedge fund brokers do not want services, but also attracted a large number of rate-sensitive customers. Due to its superior technical reserves and planning, in the face of new regulation such as MiFID II and other regulations, we are not forced to conduct a comprehensive technical upgrading and recruit a number of new employees. IB customers with intelligent developed a trading system -IB SmartRouting SM, through the algorithm to find the optimal price of the whole market to complete the transaction. SmartRouting alternative technologies by means of manual operation, and integrated into all business processes transformed into automated workflows, which can greatly reduce costs. Thus, IB has an absolute advantage in terms of cost control, so as to realize customer does not request a minimum size or revenue contribution of management.
In addition, IB has a support C ++, Java and Python programming languages such as interfaces, mainly in the service program trading customers. IB has also introduced a foreign exchange swap automated trading programs that enable customers to more reasonable prices hold foreign exchange positions. To meet the hedge funds want only one platform will be able to touch up the global market of different assets, IB developed the Investors' Marketplace, provides search tool for the configuration of institutions such as hedge funds, on the platform there are 2911 hedge funds.
4, Union Bank of Switzerland
UBS (UBS Group AG, UBS or UBS) was founded in 1862 and headquartered in Zurich, Switzerland, full-time employees 67,481 people, it is Europe's largest financial holding group. Owned by the UBS Warburg, UBS UBS Swiss institutional asset management and private banking composed of three branches, UBS's businesses include asset management, investment banking and securities and asset management three blocks. UBS UBS is a universal bank, for domestic and foreign customers (businesses, individuals, public institutions, etc.) provides a wide range of banking services, including working capital loans, construction loans, special financing, international commercial loans, export finance, project finance, securities credit and guarantees, investment advisory and custody, securities trading, portfolio management and indirect loans, issuance and distribution of stocks, bonds and notes, engage in syndicated loans, management of foreign exchange, bank notes, precious metals, in the money market business, engaged in the transfer and payment, etc. .
5, CICC
China International Capital Corporation Limited (CICC) is China's first joint venture investment bank, CICC is committed to providing customers with high-quality value-added financial services, the establishment of a research-based, investment banking, equities, fixed income, asset management investment management business structure and all-round development.