Instinet Uses JESS for Algorithmic Trading

There are a number of people who believe that “rules” are the “brains” of CEP. I would argue that rules are only “one of the many brains of CEP”, and will address this topic in a later post.

Speaking of rules, look no further than Instinet and their algorithmic trading offerings. According to Cecilia Bergamaschi of DWT, Instinet uses JESS for most of their algorithmic offerings.

Instinet, a global agency broker and wholly-owned subsidiary of Nomura Holdings, Inc, has recently launched a new cyber-trading offering, Sidewinder. Sidewinder is a CEP application of a “dynamic participation” algorithm that automatically adjusts the volume participation rate as stock price moves relative to a benchmark, allowing traders to take advantage of dynamic “value” or “momentum” situations.

According to DWT, Sidewinder is the 12th algorithm in Instinet’s portfolio of global cyber-trading strategies (eight are listed here). These include Instinet’s scheduling algorithms Wizard, Wizard PRO, Global VWAP or Volume Participation; investment strategy-specific algorithms for pairs trading and risk arbitrage; and intelligent access algorithms, such as BlockPeg, Cobra and Nighthawk.

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2 Responses to Instinet Uses JESS for Algorithmic Trading

  1. […] just saw this post referring to a trading software vendor’s use of the Sandia Labs JESS rules engine . Which of course should not be any surprise – rule engine vendors have been applying rules to […]

  2. Dou Hu says:

    Tim,

    One of the selling points of moden rule engines is to allow non-programerss to author rules. I agree rules are only “one of the many brains of CEP”. Question is any CEP vendor provides similar authoring environment for rules to non-programmers? To me, SQL is still for programmers, thought it’s simpler than Java.

    Cheers,

    Gene

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