Spot Framework is an integrated front-office software suite and Java API dedicated to the quantitative management and development of algorithmic trading automatons. It covers the entire lifecycle of quantitative models, from backtesting to real-time execution.
SpotLab (implementation and backtesting of quantitative models, portfolio simulation, historical data repository), SpotTrader (portfolio management, order management) and its add-on SpotEngine (quantitative trading) allows investment models to be converted from prototype status to production automaton.
The automation of quantitative investment models raises technical and methodological issues that go well beyond the simple technical analysis of market data streams and the electronic transmission of orders, even at high frequency. Applied to fund management, automating investment decisions firstly implies the ability to value portfolios at market speed, and to be able to compute the NAV, P&L, exposures, cash balances and significant financial indicators in real time, in order to achieve effective money management and risk management. It also requires the capacity to manage and dynamically analyze large volumes of real-time or historical market data, which is the very essence of most systematic models such as those that refer to statistical arbitrage.
The technological core embedded in Spot Framework consists of a cross asset, multi-currency valuation engine that can value complex portfolios on the fly using real-time or stored data streams at any point in time since their creation, at a precision of up to one second. This makes it easy to develop quantitative strategies with dynamic allocation and risk management rules that are closely calibrated by the instant exposure of the portfolio when the decision to buy/sell is triggered.