• Thiago W. Alves, Ionut Florescu, George Calhoun, Dragos Bozdog and Leonard Langsdorf
  • Published: 30 April 2020

A report from
Research and Markets estimates that the global algorithmic trading market size will grow from 11.1 billion US dollars in 2019 to 18.8 billion US dollars by 2024. In fact, according to JPMorgan analysts, only 10 percent of 2017’s stock market trading volume was performed by fundamental value traders.

In today’s world, led by global pandemic crises, there is a need to do more tests focused on algorithm trading strategies, rather than just standard backtesting and artificial shocks—the need for simulation of real-world exchanges.

The Commodity Futures Trading Commission proposed Regulation Automated Trading (Reg AT) a few years ago, calling for mechanisms to test all forms of automated trading before they are introduced into the real market. But, the challenge is testing such sophisticated trading platforms off-line in a realistic environment.

If done correctly, an accurate simulation would test real-world events, in real-time, in an actual global market environment. This simulation would then provide realistic insights into algorithmic trading strategies. 

Imagine the possibilities if you could test your algorithmic trading strategies and all of your company’s algorithm strategies simultaneously in a realistic exchange environment?

A simulated global exchange that is: 

  • Distributed
  • Real-time
  • Order-driven
  • Scalable

And, one that allows for:

  • Real-time pricing 
  • A distributed asynchronous market, not turn-based
  • Handles multiple asset types 

Let me introduce you to SHIFT -- Steven’s High Frequency Trading platform. SHIFT is an advanced market simulation platform that replicates the real-time, high-frequency behavior of a modern automated exchange developed at Hanlon Laboratory at Stevens Institute of Technology. 

Download the latest SHIFT Report for a full deep dive into the program and algorithmic trading simulations that are taking place today.

About Capco & Stevens

Capco is a proud sponsor of Hanlon Research Laboratory and Stevens Institute of Technology. The platform is a utility for Capco clients to test for algorithmic trading strategies and other software programs intended to interface directly to the market, enable predictive responses to potentially disruptive events, and identify potential regulatory measures to control or monitor patterns of market activity. The SHIFT program is in its fourth year and is supported by grants from the Chicago Mercantile Exchange Group Foundation.

For more information about our partnership read our press release here.