Thesys Technologies: Mitigating Investment Risks with Valuable Data

Mike Beller, Managing Partner

Building on its strength and capabilities, Thesys entered risk management for electronic trading with their risk check platform providing software that constrains the dangers of runaway trading algorithms. This required processing and storing millions of messages per second and ensuring every order on every venue was stored appropriately down to the smallest detail such as the time required for the message to transmit from the buyer to an exchange. “Taking a snapshot of the market at any given point becomes accessible,” says Beller. The team realized the value of providing big data simulations to their customers to create a snapshot of market conditions and “test” a trading strategy, which their customers had increasingly desired.

Customers wanted to test their trading strategies and analyze the “output” or results of the strategy and Thesys had the capability to create a test environment that was an exact replica of the market data based on a user defined “the day of” scenario from their customer. This became the Thesys Simulator. Originally developed at Tradeworx–the parent company of Thesys Technologies, its capabilities to create a “snapshot” of the market data and the trading strategy yielded very accurate results. “Today, the simulator also supports stronger auditing of changes impacted by new regulations and provides a tool to test strategies and their interactions with those regulations,” adds Andre Frank, Managing Partner of Thesys Technologies.