First Derivatives to provide trading system with algo testing capability to India’s largest stock exchange

Building on the success that British financial software company First Derivatives plc (LON:FDP) has experienced by providing its Delta Suite solution to large, national entities such as Australian financial services regulatory authority ASIC, the company has now branched into the Indian Subcontinent.

Today, First Derivatives announced that it has won a contract to provide the National Stock Exchange of India (NSE) with a series of next generation trading services which are based on First Derivatives’ kdb+ software platform.

Following successful user testing, the system has gone live and as a result NSE is now able to provide its clients with the capability to test their algorithms before they are made live.

According to First Derivatives, this contract has the potential to serve as an example towards improving the robustness of exchange trading platforms on a global basis and also in providing additional, value-added services to market participants.

The contract also adds a flagship global Exchange to FD’s customer base in a strategically important region. Under the contract, FD will provide an Algorithmic Testing Facility which will allow NSE market participants to test the impact of their algorithms before they are deployed in production, using trade simulators to replay historical data, create market “noise” and generate extreme market shocks to fully explore the robustness and efficacy of new algorithms.

Ravi Varanasi, Chief, Business Development, NSE commented:

“The system is expected to deliver value added services to the market participants. We can now provide Algo Test facility and accompanying data analytics to the market participants when they want it. Through individual, group and crowd tests the market participants may track an algorithm’s efficiency within and across clients.”

Brian Conlon, Chief Executive Officer of First Derivatives stated:

“This is an important win for FD, once again referencing our software’s ability to manage large volumes of real time data and, in this case, help Exchanges protect their integrity while allowing their market participantsto deploy algorithms quicklyand safely. We are delighted to welcome NSE as a client.”