Cinnober Financial Technology

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Cinnober Financial Technology
Cinnober logga red RGB .gif
Founded 1998
Headquarters Stockholm, Sweden
Key People Veronica Augustsson, CEO; Nils-Robert Persson, chairman
Employees 230+
Products Exchange platforms, risk and clearing technology, market surveillance and compliance systems
Twitter @Cinnober
LinkedIn Profile
Facebook CinnoberFinancialTechnology
Website www.cinnober.com
Releases Company News

Cinnober Financial Technology is an independent, global provider of advanced financial technology based in Sweden.[1] The firm develops trading and clearing platforms such as TRADExpress Platform as well as compliance/surveillance software. Cinnober focuses its business around developing technology, identifying new trading patterns and assisting companies in adjusting to evolving regulation. Their specialties include MiFID, ATS, risk management and trading systems development.

Cinnober develops products used by exchanges, banks and other financial institutions including Borsa Italiana, the Chicago Board Options Exchange, Deutsche Bank, Hong Kong Mercantile Exchange, London Metal Exchange, NYSE and Quadriserv. Cinnober also supports initiatives and alternative trading systems in new international marketplaces, including Alpha Trading Systems, Burgundy, Markit BOAT and Turquoise.[2]

Cinnober has more than 230 employees, most of whom have a background in marketplaces and financial IT. The firm is headquartered in Stockholm, with satellite offices in London and New York. The company's shares are listed on the Nasdaq First North market under the ticker symbol CINN.[3]

The company has a strategic minority stake in Stockholm-based Scila AB. Cinnober delivers the Scila market surveillance system to the London Stock Exchange Group's derivatives market, EDX London.[4] [5] [6] Other exchanges that have selected Scila Surveillance include Deutsche Börse Group's two largest exchanges; Eurex and Xetra,[7] the Qatar Exchange, [8] and the Stock Exchange of Thailand [9]


History

The company was founded in 1998 by four former employees of OMX and SEB (a Swedish bank) who had worked together developing trading systems during the 1980s at Digital Equipment Corporation. They wanted to develop a flexible and fast platform for financial transactions using the Internet and Java.

The four founders were joined by the present chairman of the board, Nils-Robert Persson. In 2005, Cinnober sold its subsidiary CScreen Ltd. - the provider of CScreen, a price discovery platform for equity derivatives - to Euronext.liffe.[10]

Cinnober has expanded over the years through partnerships, acquisitions and technology agreements.

In the spring of 2007, CBOE (The Chicago Board Options Exchange) chose Cinnober to provide the first fully-automated electronic FLEX Options Trading System in the U.S.[11]

That fall, Cinnober and Turquoise sealed an agreement for delivery of the Turquoise trading platform, the multi-lateral trading facility (MTF) set up by several leading European investment banks.[12] [13] Cinnober also developed a pre-and post-trade reporting system for Project BOAT, the group of investment banks whose members overlap with Turquoise.[14]

In November of 2007, Cinnober became a member of the Open MiFID Alliance (OMA), which was set up to enable financial institutions to accelerate the upgrade of their IT infrastructure and meet the regulatory requirements of MiFID.[15]

Cinnober launched real-time clearing in April 2009, to meet increased demands for high performance clearing services expected as a result of the 2008 credit crisis.[16] The Financial News called it an "all-purpose system" in May 2009.[17]

Cinnober acquired Nomura’s Swedish technology development organization in Umea in May of 2012. The deal included 40 specialists in developing equity trading applications and platforms. [18]

TRADExpress

On June 1, 2010, Cinnober launched TESS (TRADExpress Streamlined Services)—a SaaS offering for trading venues comprising a hosted and managed exchange system and market surveillance. [19]

In 2011, BM&FBOVESPA selected Cinnober to implement a multi-asset clearing system based on TRADExpress RealTime Clearing for its equities, derivatives, government bonds and spot FX products.[20]

In February of 2012, Cinnober released TRADExpress Index Engine, which it said was the world's fastest real-time index engine. Based on the TRADExpress platform, the engine connects to market data feeds or directly to feeds from different trading venues, and then calculates and disseminates the indexes in real time after each updating event. [21]

In July of 2012, the Dubai Gold & Commodities Exchange chose Cinnober's TRADExpress to provide its new trading, clearing and surveillance technology platforms.[22]

The Stock Exchange of Thailand (SET) began using Cinnober's trading and surveillance systems in 2012. [23]

In February of 2015, the Australian Securities Exchange (ASX) replaced its equities and derivatives systems with Cinnober’s TRADExpress Trading System.[24] The deal was one of the largest in Cinnober's history.[25]

In February of 2016 the Japan Exchange Group selected Cinnober to deliver real-time clearing through TRADExpress RealTime Clearing for its listed derivatives market, which is operated by the Osaka Exchange (OSE), and cleared by the Japan Securities Clearing Corporation (JSCC).[26]

Awards

Cinnober was awarded “Post-Trade Initiative of the year” for its TRADExpress RealTime Clearing technology at the annual Financial News Trading & Technology Awards in 2015.[27]

Products and Services

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Cinnober provides technology and services to trading and clearing venues, such as market operators, clearinghouses, banks and brokers. All applications have a layered design with the TRADExpress Platform as the base. The platform encompasses the infrastructural components needed for conducting mission critical transactions and ensures performance in terms of low-latency and high throughput. The business logic of each specific product is added in modules on top of the platform layer. The final step is customizing the product to suit each customer’s own business model.

The customization is done in close cooperation with the customer. Scrum and other methods that enhance agility and transparency are used in the delivery process. The TRADExpress Platform is based on Java. It has a fully redundant and scalable architecture and runs with a wide choice of hardware, operating systems and databases.

Cinnober also offers managed hosting services.

Products and services include:

  • TRADExpress Trading System is marketed as a low-latency, high-throughput trading engine that meets the needs of the most demanding marketplaces within the financial, commodity and energy sectors. In March 2010, version 8.0 of TRADExpress Trading System was released. In addition to efficiency improvements in the system protocol and business logic, new deployment options were added in to version 8.0.[28] Compared to the previous version, latency has been reduced by almost 50 percent when measuring the average response time — door-to-door. The business logic latency has been lowered to 87 microseconds, compared to the previous 138 microseconds. These benchmarks have been measured in Intel's lab in the UK and more information will be jointly released by Intel and Cinnober during late March.[29].
  • TESS Connect & Go is marketed as a Software-as-a-Service (SaaS) solution for trading intensive banks and brokers that will give instant access to Cinnober’s proven exchange technology. It is suitable for the building and provisioning of execution venues such as OTFs, SIs, SEFs and dark pools.
  • Scila Compliance provides investment banks, brokers and other market participants a tool to ensure they act in accordance with regulations, market rules and internal policies.
  • TRADExpress Event System is an application with versions, one for betting and for financial event derivatives, such as binary options and range futures.
  • TRADExpress Index Engine was touted as the world's fastest real-time index engine by Cinnober at the time of its release. It connects to market data feeds or directly to feeds from trading venues, calculates and disseminates the indexes.[30]

Nils-Robert Persson John Lothian News Interview

Cinnober Chairman Nils-Robert Persson Talks About Cinnober and the Growth of Real-time Risk Management
There are some firms who are ahead of the curve and profit from it. Cinnober Financial Technology, the Swedish-based provider of electronic trading platforms, was certainly one of them when it began pushing real-time risk management technology for trading and clearing platforms long before the 2008 financial crisis. Now it's an integral part of the marketplace. Nils-Robert Persson, executive chairman for Cinnober, spoke with JLN editor-in-chief Jim Kharouf about the speed of execution and clearing systems, as well as what's next for the firm. Watch at JohnLothianNews.com[31]

Key People

References

  1. Cinnober Financial Technology. Cinnober.
  2. Cinnober. Intel FasterFS - The Financial Services Site.
  3. Nasdaq Nordic Listing Highlights 2015. Nasdaq.
  4. Press Release. Cinnober.
  5. Press Release. Cinnober.
  6. Article. Wall Street & Technology.
  7. Deutsche Borse Taps Cinnober New Market Surveillance Technology. Cinnober.
  8. Quatar Exchange Launches Cinnober System. Cinnober.
  9. SET awards IT contract to Cinnober. National Multi Media.
  10. Cinnober Signs Three Major Contracts With Euronext.liffe. Bobsguide.
  11. Press Release. Cinnober.
  12. Turquoise decides on Cinnober’s Tradexpress. Computer Weekly.
  13. ATSs Favor Independent Tech Supplier. AdvancedTrading.
  14. Press release. Cinnober.
  15. Press Release. Cinnober.
  16. Press Release. Cinnober.
  17. Cinnober takes on clearers with all-purpose system. Financial News.
  18. Cinnober acquires Nomura’s Swedish technology development centre. Cinnober.
  19. Cinnober adds SaaS exchange offering to repertoire. Finextra.
  20. Press Release. Cinnober.
  21. Cinnober Releases World's fastest Index Engine. Cinnober.
  22. DGCX chooses Cinnober’s trading, clearing and surveillance technology. Cinnober.
  23. SET ready to launch Cinnober technology. Cinnober.
  24. Cinnober to provide ASX with new trading system. Cinnober.
  25. Australian Exchange launches technology overhaul. The Financial Times.
  26. Japan Exchange Group selects Cinnober’s real-time clearing for listed derivatives. Cinnober.
  27. Cinnober’s real-time clearing technology awarded Post-Trade Initiative of the Year. Cinnober.
  28. Press Release. Cinnober.
  29. Press Release. Cinnober.
  30. Cinnober Releases World's Fastest Real-Time Index Engine - Microsecond Continuous Updates With Superior Flexibility. Mondo Visione.
  31. Cinnober Chairman Nils-Robert Persson Talks About Cinnober and the Growth of Real-time Risk Management. John Lothian News.
Last modified on 1 March 2016, at 08:08