How AI & Algorithms Are Transforming Institutional Trading

Let's head back out to Chicago where our correspondent Mark Payton is standing by with the company that just rang Sebo's opening bell.

Hi Mark.

Thanks, Roy.

Today I'm joined by David Colletta, CEO of Quantitative Brokers.

Welcome to the CEO.

You know, moments ago, you're ringing the opening bell.

So, again, welcome to Chicago.

What was that experience like?

It was awesome.

It's great to be here and uh first time ever ringing the bell uh on a lot of trading floor.

So really appreciative of the opportunity.

Yeah, you know, it's a lot of energy here and again, it's a great city to come visit.

I know you're based in the East Coast, but There's a lot to do here in Chicago.

So for starters, tell me a little bit about your company.

Sure, Quantitative Brokers is a financial technology firm, and we specialize in developing execution algorithms for institutional investors.

So we are, our mission is basically to improve transaction costs for investors.

We grew up in futures about 18 years ago, have moved since to cash treasuries, FX, and options on futures.

That's great again.

You know with the markets right now, what are you seeing?

Like what are some advice that you could share with people?

Like what's, what's your pulse and your take on it?

Well, the thing that I see going on markets, right, is there's a tremendous amount of volatility.

There's a lot of pressures on institutional traders to do more with less, right?

There's trading more asset classes, being more helpful to PMs, playing a bigger role, and what that kind of puts on is a pressure of what happens to the execution quality, right?

I think people are much more knowledgeable about execution costs and how to go and deal with them, um, but at the same time don't have a lot of time to go in and make that a focus.

And so that's where we can kind of come in and really help because we can be your outsource partner, provide you a lot of leverage, cut your costs, and then at the same time free up a lot of mindshare to be able to go focus on the crazy things that are happening out there in the markets today.

Yeah, 100%.

I could definitely see the efficiency and how that could help out.

One of the things I want to talk about is one of your products.

That helps with this.

Striker, I believe it is.

Yeah, yeah, so walk me through this and the technology and again, like how it can assist people.

Sure, so Striker is our algorithm for options on futures, um, and it's really unique in the sense that that market is very, um, voice-driven at the moment.

We've developed an algorithm with, uh, with our team internally and, and, you know, we've hired an ex-voice broker to help teach us the tricks of the trade.

We're able to kind of trade within the minimum tick on the CME, uh, and, uh, other various exchanges.

And the power of it is really just electronic trading options on futures, uh, materially better cost than you would get kind of, uh, any other kind of source.

And so the product product is growing like wildfire.

We're up 4x year over year in terms of volume and you're coming off a great year.

Yeah, absolutely, yeah.

And so, you know, continuing to invest in that product, continuing to grow, we're gonna be onboarding ICE Europe, Eurex in the near future, and so just trying to be where traders want.

To be that is awesome.

And again, you know, it's one of those things.

I keep hearing it over and over again, the efficiency of what's happening right now.

So, you know, plugging in with you and your company that helps out with that and, you know, trying to get a handle of this market right now.

Absolutely, yes, it's crazy out there.

We're trying to do our small part to help people navigate the costs.

Yeah, that is great.

That is great.

Any plans while you're in Chicago or an in and out type of trip?

Good.

Try to hit a deep dish pizza if I've got time.

I already hit the key burger spot.

So we'll see what happens after that.

Yeah, after this, I'll help you out to navigate that.

And definitely, uh, when you're back in New York, where you're based, feel free to stop by the New York studio there.

Absolutely, I appreciate it.

Thanks for having me.

And if people want to learn more about you and the company, what's the best route?

How can they do that?

They can reach out on our website and would love to schedule a demo or a conversation from there.

All right, well, hey, thanks again for joining us.

You know, uh, welcome to the show.

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