DMA - Direct Market Access
The adoption of direct market access or DMA services is compelling investors to embrace high frequency trading strategies around buy or sell orders. The reasons for the buy side include contained trade costs and smarter execution. Hedge funds are DMA’s biggest customer segment, given the stringent anonymity standards. For the sell side, a more managed trade support expense account and a better risk mitigation approach are key considerations.
Conventionally, DMA services catered to the equity trading market with the US as their primary operational area. Today, it is gaining global relevance with the inclusion of FI, derivatives, and other asset classes. On the other hand, Regulatory standards such as MiFID encourage swift adoption of the DMA framework.
DMA services and DMA solutions are integral to HCL’s Fintech suite. Our capabilities across application development and maintenance, systems integration, and product implementation are powered by algorithmic trading frameworks. Key business benefits include:
- Consumer service level demand management
- Transaction execution speed uplift
- FIX connectivity maintenance
- High-end resource reallocation for strategic initiatives
- Cost reduction for greater profitability from the direct market access business
HCL’s capabilities in the sector have led to successful management of over a million transactions. Our rich experience in institutional trading, exchanges, and settlements helps us build a comprehensive DMA solutions delivery portfolio, which includes:
- Interfaces that support messaging protocols like FIX with multiple applications
- Monitoring, analysis, and resolution of FIX connectivity issues to/from order management systems
- Leveraging cross-trade life cycle capacities for a flexible algorithmic trading platform