Results of 2011
The last year 2011 was marked for ARQA Technologies with intensive development of basic projects run by the company and appearance of new important ones including those implemented jointly with Russian and international partners.
New implementations based on QUIK software and QORT platform
The year 2011 showed a significant, more than 30%, growth of the company's clientele. As many as 77 banks and investment/management companies (including 5 Ukrainian companies and 1 broker from Kazakhstan) joined the number of clients that use QUIK software. Fifty of that number outsourced the software on the facilities of ARQA Technologies Technical centers located in Moscow, Novosibirsk and Kiev, and 27 installed it on their own facilities.
Back Office backQORT based on the QORT platform has been implemented in 2011 in one bank and one investment company.
New server features of QUIK
In 2011 QUIK users have been offered an opportunity to participate in trading on Kazakhstan Stock Exchange (KASE), RTS Money (via FORTS trading interface), and RTS Money (via FORTS trading interface). Another opportunity offered in 2011 was that of trading option contracts, new instruments of Ukrainian Exchange Derivatives Market.
ARQA Technologies completed in 2011 the development of the program interface and was certified for integration with the ICAP's electronic trade platform, EBS, that enables access to the leading world markets of currency, precious metals and NDF contracts allowing the QUIK users to participate in trading EBS FX SPOT currency pairs.
The range of QUIK modules was significantly expanded by adding:
- MICEXPreTrade, a module developed in a joint project with MICEX that enables monitoring the client funds adequacy when making and replacing orders, if the transfer of transactions into the trading system of MICEX is made directly from the broker's software bypassing the QUIK package.
- QuantHouse, a data interface intended for reception of market data from foreign trading venues. It currently supports the data transfer from LSE.
- Automatic order processing module that enables processing client orders to buy/sell financial instruments with prices and volumes being modified as per preset algorithms.
- OMS Manager («Order Management System»), a module that allows authorized traders (through the Sales personnel) to control the filling of client orders making the whole process fully automated.
The program interface of SunGard Global Network (a joint project with SunGard) offers access to extra trading venues such as BOVESPA (São Paulo Stock Exchange), London International Financial Futures and Options Exchange (LIFFE) and Warsaw Stock Exchange (WSE).
New QUIK user workstations and broker’s terminals
Furthermore, a new terminal webQUIK Mobile being a simplified version of webQUIK intended for operation on any mobile device – Internet-connected cell phones or communicators – from any browser that supports secure SSL connection was developed by ARQA Technologies specialists and made commercially available.
The range of QUIK broker terminal was in the last year enhanced by the Market maker workstation, an additional component for the QUIK workstation intended for market maker liability management on the Ukrainian Exchange.
New features of QUIK user workstations and server modules
ARQA Technologies made in 2011 available three new versions of QUIK workstation. Software modifications were primarily intended to support novelties appearing on Russian exchanges (new fee calculation rules, transactions with the central counterparty, or iceberg orders in the Trading system of MICEX Stock Exchange) and enhance the performance. The new versions featured the optimized operation of global filters and RAM. Modifications in handling charts allowed us to make the functionality of this unit more ergonomic and user-friendly. It features new indicators of technical analysis and an opportunity to mark individual events with different sound signals implemented on the desktop.
The functionality of the new version of SMS alerts module was significantly enhanced with such features as sending messages regarding spot market limits condition, positions and restrictions in the derivatives market, and opportunity of making a limit order if the stop order is done.
Furthermore, a considerable number of upgrades was in the last year made in the Algorithmic trading module including additional settings for volatility values and TWAP orders.
Updated in 2011 were the following versions of the software: CoLibri risk manager terminal (with added option of position transfer and margin level setting), webQuik/webQuik Mobile workstations (with implemented SMS-message support) and iQUIK-HD for iPad (with added option of technical analysis indicators construction).The functionality of the TrustManager terminal was in 2011 implemented as a plug-in for an ordinary QUIK terminal with an opportunity of option buy/sell transactions added.
Development of solutions based on the QORT platform
The year 2011 saw serious changes in what regards the enhancement and updating of functional capabilities offered by solutions based on QORT platform.
The system monitoring module that now enables one to monitor user workstation versions and activity as well as delays in data processing was in the last year significantly upgraded. The feature of automatic user workstation upgrade was implemented along with the optimization of the platform and enhancement of its ergonomic characteristics. Works to adapt the platform to the merger of exchanges and requirements of supporting new markets and trading modes have been carried out.
The backQORT, a back office module, was in 2011 enhanced with an opportunity of making clientele reports in English and an expanded functionality of VAR analysis for post-trade portfolio risk assessment. The back office system was also provided with certain CRM functions including the service of sending information, greeting, and passport validity expiration messages. A set of functions for classifying the client relative to different risk groups as per requirements of the Federal Service of Financial Monitoring was added. Adopted in 2011 was the "maker/checker" model of noncommercial transaction data input that follows the "four eyes" method.
The midQORT, a middle office module, saw a series of upgrades that enhance the functionality of PnL reports including the adoption of new forms of profit and loss accounts for the derivatives and currency markets.
Development of services based of the company's technical centers
By the turn of the year, the number of banks and investment/management companies that used the ARQA Technologies software products and services through outsourcing, reservation and hosting based on the company's technical centers in Moscow, Novosibirsk and Kiev was more than 100 including 15 Ukrainian brokers.
Both retail QUIK contours providing service for up to 8000 simultaneous connections and high-frequency trading (HFT) contours offering a transaction processing rate of 6-7 mcs are run for the time being at the Moscow Technical Center.
Development of test and training services
The last year 2011 saw a significant increase in the number of companies and banks that used QUIK-Junior training system on their own premises or outsourced it from the Novosibirsk Technical Center of ARQA Technologies. The number of end bank/company service users that outsourced the QUIK-Junior system for more than a year has grown as well.
The QUIK-Junior service was intensively used by Ukrainian brokers to introduce their potential clients to QUIK and train them. Compared to the previous year, the number of such companied has grown twofold. The end users showed demand for access to all Ukrainian markets, such as spot and derivatives markets of the Ukrainian exchange and PFTS.
The development of training services in Kazakhstan included the arrangement of tutorial trading for both brokers and higher school students. Access to the test trading system of KASE was organized as well.
In 2011 banks and investment companies, clients of ARQA Technologies, intensively used an opportunity of testing QUIK modules and workstations free of charge. As many as 120 companies and banks were offered an opportunity of testing 60 different QUIK modules and workstations. The last year showed a significant increase in the number of companies and banks that used the test server of ARQA Technologies to run individual modules in the trial mode and test business models.
The QORT project offered in 2011 an opportunity of testing at the Novosibirsk Technical Center of ARQA Technologies the back office software (backQORT) to 7 and the middle office software (midQORT) to 8 banks and companies.
ARQA Technologies held for its clients in 2011 a series of training webinars (seminars with the use of the Cisco's WEBEX technology) dedicated to the operation of QORT and such topics as administration and accounting of client positions in QUIK. Upon requests from Russian and international companies, individual WEBEX presentations of principal QUIK features and QORT-based solutions have been organized.
The company's projects in C.I.S. and Europe
The project of expanding the range of solutions and services available for the company's clients in Ukraine included in 2011 the establishment and commissioning of a Technical center in Kiev. This center offers to Ukrainian banks and companies services of outsourcing, hosting and hot backup based on the QUIK server and its components. Only well tested and proven for efficiency at the other technical centers of the company infrastructure solutions were used such as client access to the Internet via broadband connection, server capacity with an allowance for further development, high-speed channels to PFTS and Ukrainian Exchange with an opportunity of reservation and switching automatically.
In furtherance of the company's business development in Kazakhstan, specialists of ARQA Technologies made the seventh annual seminar for clients and partners in Moscow enabling the connection of QUIK to KASE via FIX. Any KASE member, be it a company or a bank, is currently offered an opportunity of fee testing the connection to KASE via QUIK based on the Technical Center of ARQA Technologies in Novosibirsk.
In September 2011 the QUIK software was certified by the Warsaw Stock Exchange (WSE) and ARQA Technologies was included to the list of independent software suppliers of WSE.
Joint work with exchanges
In 2011 people from ARQA Technologies intensively worked in Technical Committees of MICEX and RTS. In view of the fact that the company is experienced in providing service for a number of clients involved in different types of financial business, this work was helpful for Russian exchanges to better consider trading participant's interests in the planning and implementing of technical solutions.
ARQA Technologies proposed in в 2011 that Ukrainian Exchange establishes a technical committee of its members. Among the first outcomes of the project was the revision of possible methods used to connect to exchange platforms and the structuring of that information on the exchange's official website.
In autumn 2011, ARQA Technologies actively participated in the joint load testing with MICEX and RTS. The testing was run with participation of brokers, clients of the company, that were offered a unique opportunity to test their trading infrastructures and related services under conditions of an activity that exceeded several times the ordinary values of actual trading. Upon completion of the tests, ARQA Technologies provided all clients that participated with reports reviewing the operation of QUIK, QOPT and the exchange infrastructure. A summarized report with cumulative values was sent to the exchanges.
Participation in trade shows and conferences, organization of events for clients
2011 was for ARQA Technologies a year of active participation as delegates, speakers, moderators and exhibitors in Russian and international forums, exhibitions and conferences. Particularly notable were a series of TradeTech conferences in London, Moscow and Singapore organized by WBR company, as well as High Frequency Trading World 2011 in Amsterdam and Exchange Technology World 2011 in Madrid organized by Terrapinn.
Besides, ARQA Technologies participated within the last year in C.I.S. forums held by PFTS, Ukrainian Exchange and CBONDS-Kazakhstan, and several Russian events organized by the Derivative Expert agency, iFin.ru portal and RCB media group.
In February 2011 the company held the seventh annual seminar for clients and partners in Moscow. As in the year before, the seminar offered roundtables for brokers and representatives of Russian exchanges. An exhibition was for the first time held at the seminar with participation of MICEX, RTS and SunGard, the partner in foreign projects of ARQA Technologies. In October of the last year the third annual workshop of ARQA Technologies clients and partners in Ukraine was held.