Patsystems Plc

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Patsystems Plc
Patsystems May09.jpg
Founded 1994
Headquarters London, with offices in Chicago, New York, Singapore, Tokyo, Sydney, Hong Kong
Key People Richard Last, Chairman/Non-Executive Director; David Webber, Chief Executive
Products Trading Solutions Provider
Website www.patsystems.com

Patsystems is a trading-solutions provider best known for its globally distributed J-Trader front-end trading screen. Patsystems is an AIM-listed company incorporated in England and Wales (registered under number 4498002).

Patsystems also offers a network of exchange connectivity, risk management solutions and an API for third-party solutions providers. Patsystems' matching engine powers seven exchanges globally, including the ICDX of Indonesia, TurkDex, and the Agricultural Futures Exchange of Thailand (AFET).[1]

ION Trading is also a major shareholder in Patsystems Plc, with an equity stake of 29.06 percent in the software vendor. In November 2011, ION approached Patsystems with a 14p per share offer, a value of £29m. ION also admitted at that time that it had been heavily impacted by the collapse of broker-dealer MF Global Holdings Ltd. Patsystems estimated that MF Global owed it £900,000.[2]

People

Commentary

History

Patsystems was founded in 1994 by a group of derivatives traders and technology professionals at a time when the futures markets were beginning to migrate from physical trading floors to an electronic model. Tom Theys, a former floor trader, designed the Patsystems software while working at Liffe. The idea was based around a hand-held device that would put orders into other markets with an interface that would connect the hand-held to the DTB (the forerunner to Eurex) to facilitate arbitrage with Liffe. That led to offering clients direct access to exchanges through the Internet; the software Theys designed would then be distributed to locals in dealing rooms or in their homes. Unlike other ISVs at the time, Theys and the other Patsystems founders were interested in bringing direct access to retail as well as institutional customers.

Eventually, the company was approached by Investec, a South African bank that wanted to take Patsystems public, which it did. Patsystems raised $80 million in an IPO in March 2000. Theys left Patsystems in 2003.

(The company floated on the London Stock Exchange (LSE) in March 2000 and re-listed on the Alternative Investment Market in February 2003.)

Products

Patsystems provides trading software for more than 10,000 users through hundreds of brokers around the world. More than 50 firms deploy Patsystems technology, including eight of the top 10 futures commission merchants.

Patsystems offers clients a choice of three front ends. Besides the well-known J-Trader, the company has more recently introduced Pro-Mark and IQ Trader.

Patsystems provides tailored solutions targeted at different types of client, including solutions for retail traders, professional traders, API specialists, and risk managers.

  • Pro-Mark is an advanced application designed for professional, high-volume traders. It was built for high-speed trading, in particular of complex strategies such as multi-leg spreads. Pro-Mark's key features include intuitive trading and intelligent order management, sophisticated spreading tools, Excel integration, technical charting, and advanced options functionality. Pro-Mark was named "Technology Product of the Year" in the 2008 FOW Awards. [11]
  • J-Trader, created in 1999, followed a resident application version with similar functionality. It is one of the most widely used front-ends in the derivatives trading business and provides direct access to all the leading exchanges. J-Trader offers multi-market, real-time trading worldwide, as well as pre-trade risk management and the trading of futures, options and forex all on one screen.
  • IQ Trader is designed for technical traders (chartists). It contains tools that analyze and interpret markets to help traders choose the best strategies, enabling them to perform sophisticated operations without needing programming skills. It offers fast, easy backtesting and guarantees seamless automation. It also connects to a large number of data providers.
  • SyOMS is Patsystems' Synthetic Order Management System that enables the trading of non-exchange supported order types. These include Iceberg, Ghost, and Bracket orders. SyOMS Pro also supports With a Tick, OCO, and Time-Sliced orders.
  • Patsystems Risk Informer provides sophisticated, real-time risk management across all asset classes. It calculates margin requirements and aggregates trades on a real-time basis, giving a consolidated view as the client trades. The result is a comprehensive picture of risk to satisfy the needs of all traders and risk managers.
  • Patsystems Risk Alert is Patsystems’ newly implemented pre-trade risk management solution. Risk Alert offers clients the ability to configure and manage an extensive set of comprehensive risk checks, helping to prevent risk before the trade even takes place.
  • Patsystems X-Link is a software product that allows customers to trade on [[remote exchange]s without becoming a member. It is not a fixed network; rather it bridges separate Patsystems trading domains and systems, for example letting a customer trade on a Chicago system and a London system at the same time.
  • Patsystems API[12] is a full-function interface to Patsystems' trading system; Patsystems uses it to service its own front-ends. The API can be used by third parties who want to write their own front end to their exact requirements, or traders who want to integrate with charting packages or algorithmic trading systems. Parties who are are familiar with the Financial Information Exchange (FIX) protocol, the industry's leading protocol for financial trading interfaces, can connect to Patsystems' FIX Trading Gateway, which supports an extended FIX.4.2 message set. FIX allows parties to run on whatever platform they desire.
  • Patsystems XConnect is Patsystems' fully-managed application service provider (ASP) offering that provides the full benefits of the Patsystems trading solution without the requirement for clients to invest in a technology infrastructure or technical support resources.
  • J-Simulator is a training tool that enables users to "test trade" within a simulated trading environment.

Patsystems in Malaysia

Patsystems now offers direct market access to Bursa Malaysia. Customers using Patsystems will now have electronic access to Malaysian flagship products such as Malaysian Crude Palm Oil futures. In related news, Phillip Futures has taken a full installation of the Patsystems infrastructure in Kuala Lumpur. [13] [14] [15]

In September of 2009, Patsystems announced a signed software license agreement with TA Futures Sdn Bhd, a licensed Futures Broker of Bursa Malaysia.[16]

In March of 2010, Patsystems was selected as the technology provider for Bursa Malaysia’s new front-end for derivatives trading, known as Order Management System (OMS). [17]

Patsystems in Brazil

Patsystems completed the BM&F certification process and is therefore a Certified ISV of the exchange, offering direct market access to all BM&F products. Patsystems also offers access to BM&F products via CME Globex, the electronic trading platform of CME Group. This link allows existing CME Group customers to trade the main BM&F derivatives contracts listed on the Globex platform.[18] [19]

On Sept. 29, Patsystems announced that they had signed a Software License Agreement with their first client in Brazil, Flow Corretora.[20]

Patsystems in Hong Kong

On June 25, 2008, it was announced the newly formed Hong Kong Mercantile Exchange (HKMEx) had selected Patsystems for both its front-end trading model and risk management system.

HKMEx would offer Patsystems’ J-Trader and Pro-Mark. Pro-Mark functionality includes options trading capability, charting, Excel integration, spreading tools and functionality designed specifically for energy traders.

HKMEx would also utilize Patsystems’ post-trade risk management system, Risk Informer. Risk Informer will manage margin risk for all asset classes traded on HKMEx. Risk Informer will calculate margin requirements in real-time, using standard margin methodologies including SPAN, TIMS, and proprietary margin calculation. It aggregates trades on a real-time basis and provides a consolidated view in real-time as trades are executed.

Continued Growth in Hong Kong

Patsystems announced that Guotai Junan Futures (Hong Kong) Ltd (Guotai) has signed a deal to implement and deploy Patsystems technology in Hong Kong.

Guotai would take a full installation of the Patsystems solution. The solution would provide Guotai and its customers with direct access to CME, CBOT, NYBOT, ICE, LIFFE, LME, Eurex, SGX, OSE, KRX, and HKEX via the Patsystems X-Link, which enables Patsystems’ customers to interconnect to a receiving broker.

Patsystems in Indonesia

Patsystems was selected as the preferred technology provider for the newly established Indonesia Commodity & Derivatives Exchange (ICDX) on Sept. 8, 2009. Patsystems will provide ICDX with trade matching engine, clearing and settlement platform, pre-trade risk management and the front-end execution platform.[21]

Patsystems in Singapore

In September of 2009, Patsystems announced connectivity to the Singapore Commodity Exchange (SICOM) enabling customers to trade in the SICOM rubber markets. [22] They also announced that they will provide connectivity to the Singapore Mercantile Exchange (SMX) when the exchange launches later this year. [23]

Patsystems in Taiwan

In November of 2009, Patsystems announced connectivity to the Taiwan Futures Exchange (TAIFEX) enabling traders access to the MSCI Taiwan Index & TAIFEX Futures, Spreads and Options. [24]

Patsystems Risk Informer

On June 24, 2008, announced that GH Financials had selected Risk Informer to be its global post-trade risk system.

The system will manage global risk for all exchange trade futures and options at GH Financials. The solution would monitor clients’ aggregated risk in real-time across all the clients’ trading activities and will provide both real-time monitoring and automatic notification of limit breaches.

Risk Informer is a standalone solution built to monitor and manage risk in real-time on multi-asset classes executed through any trading platform.

Patsystems' risk management tools, Patsystems Risk Informer and Patsystems Risk Alert were featured in Bobsguide and RFPConnect in June of 2009.[25] [26]

Expanded Exchange Connectivity

Patsystems now offers connectivity to TurkDex, the Turkish Derivatives Exchange, and IDEX, the new segment of the Borsa Italiana’s derivatives market (IDEM).

On November 1, 2010, Patsystems launched XConnect, a fully-managed Application Service Provider (ASP) offering. This is the fourth new hub following launches in Singapore, Sydney, Hong Kong and Tokyo. Patsystems is working with Interactive Data for the delivery of these connectivity services. [27]

References

  1. Exchange Solutions. Patsystems Plc.
  2. Patsystems gets approach from Ion Trading. Financial Times.
  3. Patsystems Key Personnel. Patsystems PLC.
  4. Midas Extra: Kalahari Minerals & Patsystems. ThisisMoney.co.uk.
  5. Patsystems Key Personnel. Patsystems PLC.
  6. Patsystems Key Personnel. Patsystems PLC.
  7. Patsystems Key Personnel. Patsystems PLC.
  8. Patsystems Key Personnel. Patsystems PLC.
  9. Patsystems Key Personnel. Patsystems PLC.
  10. Patsystems Acquires Mixit for 17.5 million pounds. low-latency.com.
  11. Patsystems Signs Contract with Nomura Securities International, Inc. Automated Trader.
  12. Patsystems’ FIX Trading Gateway. Patsystems PLC.
  13. Press ReleaseExchange. Patsystems Plc.
  14. Bursa Malaysia Hopes for Volume Boost as Patsystems'. Fointelligence.
  15. Patsystems offers e-trading of futures. BusinessTimes.
  16. Patsystems Signs Contract with TA Futures Sdn Bhd. Patsystems.
  17. Bursa Malaysia Derivatives Selects Patsystems to provide OMS for derivatives trading. Patsystems.
  18. Press ReleaseExchange. Patsystems Plc.
  19. Patsystems Gains Access to Brazilian Market. FinanceTech.
  20. Patsystems Signs First Brazilian Customer, Flow Corretora. Patsystems Press Release.
  21. Patsystems Selected As Technology Provider for Indonesia Commodity And Derivatives Exchange. Patsystems.
  22. Patsystems Announces Connectivity to the Singapore Commodity Exchange (SICOM). Patsystems.
  23. Access the Singapore Mercantile Exchange (SMX) Through Patsystems. Patsystems.
  24. Patsystems Announces Connectivity to Taiwan Futures Exchange. Patsystems.
  25. Patsystems Ameliorates Turbulence In Risk Management. RFP Connect.
  26. Patsystems’ Risk Management Products Meet Market Demand. Bobsguide.
  27. Patsystems Signs Agreement With Interactive Data 7ticks For Connectivity Services To Patsystems XConnect Hub In Chicago. MondoVisione.
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