Electronic trading technology solutions provider Adaptive has partnered with Kepler Cheuvreux’s execution division, KCx, to provide an event-driven trading system. Global Trading speaks to Kepler Cheuvreux chief technology officer Anvar Karimson and Adaptive CEO Matt Barrett to learn more.
Anvar Karimson, chief technology officer at Kepler Cheuvreux, told Global Trading that the firm was aiming to shift the narrative from buy-vs-build to a combined approach, “where you figure out which pieces are interesting and relevant to build, and which pieces you are happy to buy off the shelf.”
While working on the partnership, “what really came to the surface was this idea of primitives,” Karimson explained. “They’re small and concise enough that they make sense as standalone services, and then we can orchestrate workflows and processes on top of them to create higher-level functions.”
On this point, Matt Barrett, CEO of Adaptive, added that the goal of Adaptive’s technology “is not to impose constraints or any limitations on firms, but instead to lower the undifferentiated amount of work they have to do to build unique solutions. Our components enable firms like Kepler to build differentiating services without having to do a lot of very basic, low-level work that doesn’t add value to them or their end customer.”
He noted that “over the last 10 years, there’s been a move towards high level platforms that allow people to innovate and experiment, building upon the capabilities that those platforms provide. And that’s what we enable with our technology.”
The service uses Adaptive’s open-source, low-latency messaging platform Aeron and development technology suite Hydra. It has been built on a hybrid tech stack and can function both on premise or, in the future, on cloud.
“Buying hardware, putting it on-prem, managing that; it adds a lot of time to the delivery plan,” Karimson said. “For us flexibility is key.”
He went on to highlight the importance of having a proper testing capacity, something facilitated by the cloud. “It’s a key component there, especially with new regulations such as DORA,” he added.
Through the partnership, clients will be able to observe and manage KCx’s execution flow through a new front-office execution equities platform. Connecting the firm’s global equities trading ecosystem through a sequencer-based technical architecture will simplify workflows and provide new functionalities, the company said.
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