A global, US-based multi-strategy hedge fund selected Horizon Trading Solutions to accelerate the launch of its Asian volatility trading activities with a fully managed options execution platform. The solution combined specialist volatility algorithms, proprietary pricing integration, automated hedging and seamless connectivity to the hedge fund’s existing OMS and prime-broker network.
The Challenge
The hedge fund needed to launch sophisticated options and volatility trading workflows across multiple Asian markets without building and operating an additional specialist technology stack internally.
The Solution
Horizon deployed a fully managed, modular execution platform combining HVO, HVS and HVSO volatility algorithms, automated hedging, proprietary pricing integration and FIX connectivity.
The Outcome
The hedge fund established a scalable volatility trading foundation that retained its existing OMS, risk controls and proprietary models while supporting future expansion across teams, strategies and markets.
Deployement at a glance
Expected time to market, including infrastructure provisioning, connectivity, UAT, training and workflow validation.
An initial UAT and validation environment followed by migration to the target regional production infrastructure.
Launching a Volatility Trading Operation Without Building Another Technology Stack
The hedge fund was establishing a new Asian volatility trading operation spanning multiple portfolio management teams, trading desks and locations.
The firm required sophisticated volatility-based, multi-strike and multi-leg execution capabilities that could not be supported efficiently through generic order-entry tools.
Portfolio managers needed to retain control of their prices, volatility surfaces, Greeks and trading methodologies.
The new platform had to work with the hedge fund’s existing OMS, risk controls, prime brokers, market data and downstream infrastructure.
Newly appointed portfolio managers needed to begin trading without waiting for the firm to build and operate an additional internal technology stack.
The project required alignment between trading, technology, risk, compliance, networking and legal stakeholders across several regions.
A Modular Volatility Execution Platform
Horizon designed a specialist execution layer that complemented the hedge fund’s existing infrastructure rather than replacing it.
Specialist HVO, HVS and HVSO Algorithms
Horizon’s volatility algorithm suite enables portfolio managers to systematize sophisticated options execution and hedging workflows. HVO supports the execution of targeted Greek exposures including Vega, Gamma and Theta across individual options or ranges of strikes. The resulting delta exposure can be hedged automatically. HVS extends these capabilities to relative-value and multi-leg strategies, including dispersion trades across indices, constituent stocks and other instruments. Together with HVSO, the algorithms provide a differentiated framework for automating volatility execution that would otherwise require significant manual intervention.
Proprietary Pricing Integration
The hedge fund can inject its own prices, volatility surfaces and Greeks through Horizon Price Vectors. This allows Horizon’s algorithms to execute using the portfolio managers’ proprietary valuations while preserving the firm’s intellectual property and trading methodology.
Existing OMS and Prime-Broker Connectivity
Horizon connects to the hedge fund’s internal OMS through FIX. Orders continue to pass through the firm’s existing risk controls, routing policies and downstream processes before being sent to its prime brokers. This enables the firm to add specialist volatility functionality without replacing its core order-management infrastructure.
Fully Managed Infrastructure
Horizon provides the hosted infrastructure, connectivity, monitoring, maintenance and operational support required to run the platform. The deployment follows a phased approach, beginning with UAT, training and workflow validation before migration to the target production environment.
Measurable Business Outcomes
The managed deployment model provided an expected time to market of approximately two to three months, including infrastructure provisioning and validation.
Through FIX connectivity to prime brokers, the platform can support the markets and instruments available through the hedge fund’s existing broker relationships.
Portfolio managers gained access to specialist algorithms for Greek-based execution, multi-leg strategies and automated delta hedging.
The hedge fund continued to use its own pricing, volatility surfaces, Greeks, risk rules and trading logic.
The firm avoided having to build and operate a separate specialist volatility execution platform internally.
The architecture can support additional portfolio management teams, proprietary algorithms, prime brokers, strategies and regions.
Frequently Asked Questions
A Hedged Volatility Order, or HVO, automates the execution of option trades according to a targeted Greek exposure, such as Vega, Gamma or Theta. The associated delta exposure can be monitored and hedged automatically.
Horizon supports single-strike and multi-strike execution, relative-value strategies, calendar spreads, dispersion trading, basket workflows and automated delta hedging.
Yes. Horizon can operate as a specialist execution layer connected to the hedge fund’s existing OMS through FIX, allowing current risk controls, routing policies and downstream workflows to remain in place.
Yes, platforms like Horizon allow hedge funds to inject their own prices, volatility surfaces, and Greeks through proprietary price vectors, preserving the firm's intellectual property. The platform connects to the existing OMS via FIX, ensuring orders continue to pass through established risk controls, routing policies, and downstream processes.
Key benefits include faster time to market, reduced internal technology burden, scalable market access through existing prime-broker relationships, and systematic volatility execution with specialist algorithms. The modular architecture also provides a foundation for future expansion across additional teams, strategies, regions, and proprietary algorithms.
Horizon can connect natively to supported markets or route through the hedge fund’s prime brokers. When using prime-broker FIX connectivity, the platform can access the markets and instruments made available through those broker relationships.
Based on Horizon's deployment for this global hedge fund, the expected time to market is approximately five to six months. This timeline includes infrastructure provisioning, connectivity setup, UAT, training, and workflow validation, following a phased approach before migration to the target production environment.
Planning a Similar Volatility Trading Expansion?
Speak with Horizon’s specialists about deploying advanced options execution, automated hedging and proprietary volatility strategies without replacing your existing trading infrastructure.
