Horizon Plans Enhancements to Algo Framework

Technology vendor Horizon Software is developing new capabilities for its algorithmic framework that will allow users to build and customize the algos themselves. 

Adrien Mastronardi, head of Asia-Pacific sales at Horizon, says the company started enhancing its algo framework about a year ago as more clients look to implement more specific strategies. 

“We have some existing algos, but now users can add new logic, new priorities, or can modify the way they hedge,” he says. 

Users have access to a scripting tool inside Horizon’s platform where they can develop their strategies. This tool can be used to build and customize existing algo strategies to fit different market specificities. 

“Instead of a black box, we’re now making it like a glass box so you can see some of our code and modify some aspects of it,” he says.

Some parts that are not open for modification include the order management and other “very specialized and unique features.” Instead, users will be able to scrape logic to create new arbitrage, trading, and market-making strategies.

“It’s more focused on new logic strategies, and not the core features like subscribing to market data, so you can modify the logic of when you send the order or the signals that you follow. You can modify the order priorities, which is important for market makers,” Mastronardi says. 

However, clients will need to buy specific modules that will allow them to do the modifications, he adds. 

So far, about half of Horizon’s clients can customize the algos by themselves. These are more likely the investment banks that have good IT teams that can modify and create their algos. “The remaining half, they may not have the skills to do that, so they’ll ask Horizon to do it for them,” he says. 

Meanwhile, Horizon is continuing to create new features in the system. It is building new features to trade options and volatility in a smarter and more advanced way using algos, he adds. 

“We are still making enhancements to our platform. Clients are buying a platform that is evolving where we continue to add new features, to which some are part of our APIs. If they are part of the APIs then it can be used in the algo framework,” he adds. 

Horizon is also continuing to hire more staff and will be opening up new offices that it will announce shortly.