From AMCs to ETD Execution: The architecture behind faster time-to-market
- Horizon Trading Solutions accelerates time-to-market for AMCs, ETF options, listed certificates, and ETD execution through proven architectural patterns, reusable templates, and standardized workflows.
- For AMCs, consolidating instrument static data from multiple vendors into a single master view and implementing customizable proxy strategies for liquidity gaps are foundational to reliable pricing and trading.
- Structured product hedging leverages an elastic execution architecture with horizontally scalable algo workers, treating crypto as just another asset class while maintaining proprietary logic in-house.
- ETD execution is accelerated through on-demand instrument loading, hybrid member/broker exchange access strategies, and straight-through processing with open API hooks for risk and credit checks.
- Maintaining an asset-agnostic execution layer across all product types avoids redundant engine builds and enables seamless integration with OMS, Middle Office, and SOR systems at scale.
Practical patterns Horizon uses to launch faster and hedge smarter
In Part 1 of this series, we explored the market forces shaping modern trading workflows. In this article, we’ll go deeper revealing how Horizon Trading Solutions delivers faster time-to-market through proven architectural patterns, trade-offs, and reusable templates.
Whether you’re managing Actively Managed Certificates (AMCs), ETF options, listed certificates, or Exchange-Traded Derivatives (ETD) execution, the principles below help accelerate delivery, improve automation, and enable smarter hedging.
AMCs: Building dynamic baskets on solid plumbing
Consolidate static data for accurate P&L
Instrument static data is key. Start by consolidating multiple vendor data sources into a single master view, supported by flexible data mapping, cleanup, and governance. This foundation ensures smooth trading workflows, from pricing to trading.
Design proxy strategies for liquidity gaps
Liquidity isn’t guaranteed. To remain consistent and reliable at whatever the time of the day or the market conditions, a customizable proxy strategy is required. Define backup assets, prioritization rules, and time-based schedules for when constituents become illiquid or underlying markets are closed.
Standardize quoting across assets
Treat quoting as asset-agnostic: theoretical price + spread + target markup. Distribute quotes via standard market data buses (FIX, and company Web portals to ensure consistency and auditability.
Integrated hedging and rebalancing
Accept hedge orders from AMC sponsors or internal bookkeeping systems and consider hedging and rebalancing flows as FIX DMA where appropriate. AMC structure can be represented as a master trading portfolio, derived into sub-portfolios to track constituents’ exposure and embedded risk monitoring and hedging.
Maintain real-time portfolio composition
Use a real-time index algorithmic logic to maintain the AMC’s composition and compute both spot and theoretical prices, aligning risk and execution views seamlessly.
Structured product hedging and ETCs: Scaling out, not up
Elastic execution architecture
Use scalable algo workers that can expand horizontally during peaks (client flow + hedge flow). Always plan capacity for market shocks, and record tick and OHLC data for backtesting and algo calibration.
Treat Crypto as just another asset, with caveats
Execution logic for crypto trading should mirror FX (or even vanilla equities), but exchange APIs and protocols vary widely. Implement robust routing that blends static preferences with dynamic venue selection based on live conditions. Keep your proprietary logic in-house—the framework should never require disclosure of IP.
Seamless IS integration
Expect to plug into OMS, Middle Office, and SOR systems. Prioritize standard record formats and data models to achieve interoperability at scale.
ETD Execution: Fast onboarding, safe automation
On-Demand instrument loading
Load option classes and contracts only when needed, automatically or manually, by resolving data through market-data vendors and internal stores. This approach minimizes overhead and reduces time-to-first trade.
Member vs. Broker access: Choose strategically
Choose native exchange membership for advanced order types and low latency; use broker access to accelerate footprint expansion. Many clients adopt a hybrid approach for flexibility.
Straight-Through processing by design
Expose open “API hooks” and callbacks throughout your workflow to provide full flexibility to integrate with internal risk, credit, and eligibility checks. When a vanilla care order passes all validations, auto-release it to market.
Keep execution cross-asset by default
Maintain an asset-agnostic execution layer, with only minimal adaptations for exchange-specific quirks. This avoids redundant engine builds across asset classes.
Conclusion
Whether you’re launching AMCs, ETF options, or listed certificates, or industrializing ETD execution, the right architecture can dramatically reduce time-to-market.
What to Read Next
Want the technical patterns behind this strategy AMCs, ETF options, listed certificates, ETD execution, and how we approach 24/7 resilience? Talk to our team about a discovery workshop.
Frequently Asked Questions
Horizon accelerates time-to-market through proven architectural patterns including consolidated static data management, standardized asset-agnostic quoting, elastic execution architecture, and on-demand instrument loading. These reusable templates and automation-first designs reduce setup overhead and enable faster delivery across AMCs, ETF options, listed certificates, and ETD execution.
Key best practices include consolidating instrument static data from multiple vendors into a single master view, designing customizable proxy strategies for liquidity gaps, and maintaining real-time portfolio composition using algorithmic logic. AMC structures should be represented as master trading portfolios with sub-portfolios to track constituent exposure and embedded risk monitoring.
Crypto execution logic should mirror FX or vanilla equities workflows, but must account for widely varying exchange APIs and protocols. Firms should implement robust routing that blends static preferences with dynamic venue selection based on live market conditions, while keeping proprietary logic in-house without requiring IP disclosure.
Native exchange membership provides access to advanced order types and low latency, while broker access enables faster geographic and market footprint expansion. Many clients adopt a hybrid approach that combines both models for maximum flexibility and strategic coverage.
STP improves ETD execution by exposing open API hooks and callbacks throughout the workflow, enabling seamless integration with internal risk, credit, and eligibility checks. When a vanilla care order passes all validations, it is automatically released to market, eliminating manual intervention and reducing time-to-first-trade.
