Konstantinos Zenelis, Head of Business Operations
Almost every day in the trading world, one comes across the terms, “bull” and “bear” to describe the market conditions. Simply put, “bull” refers to a rising stock market and “bear” indicates a trading-verse in which share prices are falling. While there are various ways an investor can work through bull or bear markets, automated trading platforms are increasingly becoming an industry mainstay to cope with these fluctuating financial conditions. Riding on this automated trading bandwagon, even small trading firms today have started looking at different ways to offer their own trading algorithm to revolutionize the trading market. However, the huge upfront setup cost of executing these algorithms poses as bottlenecks for the smaller investment firms and individual brokers, making automated trading only a hallmark of bulge bracket banks like Morgan Stanley and Goldman Sachs. Amidst these setbacks, “We make the unobtainable goal of deploying a proprietary trading algorithm a tangible reality for independent broker-dealers,” says Konstantinos Zenelis, head of business operations at Lynx Capital.
This software solution and services company from New York City makes it possible for small broker-dealers to offer their own algorithmic-trading solution without shelling out. Unlike white-labeled trading platforms—provided by large investment firms—that has a black box approach, Lynx Capital believes in bringing a degree of transparency into its inner mechanism. While doing so, the company also helps its clients to downsize the entire bulky infrastructure of an automated trading platform and test their own order entry and execution algorithm from inception to execution, in order to optimize the platform and increase their profitability. “We provide an arsenal of technological solutions with proven capabilities, which makes us a one-stop shop for trading firms willing to go on an innovative and creative path of automated trading,” exclaims Zenelis.
We make the unobtainable goal of deploying a proprietary trading algorithm a tangible reality for independent broker-dealers
While engaging with a client, Zenelis points out, “Instead of offering an off-the-shelf trading algorithms like VWAP (volume-weighted average price) and TWAP (time-weighted average price), we tailor the algorithmic trading platform based on individual customers needs.” Team Lynx, therefore, begins by understanding their technological requisites for orchestrating and executing a client’s own trading algorithms. Next, Lynx uses the preliminary knowledge to customize its platform according to customers’ individual requests. After implementing the first iteration of the solution, Lynx conducts rigorous qualitative and quantitative analytics to refine the platform further, until the trading platform is fully optimized to serve its purpose. To help the trading firms avoid any potential financial loss, Lynx Capital also allows the firms to evaluate the trading platform without zero financial risks to their business.
Besides, Lynx provides a collection of uniquely modular and tiered APIs for integrating its own ticker plant, simulation environment, and execution services with clients’ trading platforms. The integration is completely customizable to fit the requirements of a particular client strategy. Furthermore, by knowing the value of every split second in a volatile market and the opportunity cost of slow development cycles, Lynx has developed a proprietary way of setting up algorithms and routing strategies in an environment that allows a daily release cycle, or as often as the clients need it.
Indeed, these innovations are helping Lynx Capital to carve a niche for itself in the trading world. Given these scopes of functionalities, the company is looking to further expand its capabilities by building new technologies and differentiate itself from its competitors. “As a client-driven company, our future goal will be to continuously identify the needs of the end customers of our clients and opportunities for them to scale their business,” concludes Zenelis.