Revolutionizing Options Trading via an Alternative Trading System

SpiderRock is a Chicago-based technology platform specializing in high-performance financial trading systems. They offer advanced algorithmic execution, risk management and data analytics services for large asset managers and trading firms.

The Problem

Traditionally, block trades in the options market have been manually negotiated over the phone or online chat, leading to delays, a higher risk of errors and missed opportunities. To address these challenges, SpiderRock enlisted Spantree, a Trifork company, to help build SpiderRock Connect, a tool designed to facilitate the execution of large block trades through an automated, efficient, and secure web platform.

A core innovation of SpiderRock Connect is its ability to provide traders with enhanced visibility across a wide pool of potential matches. It incorporates real-time auctions to dynamically match large orders with the best available counterparties. By aggregating a larger network of trades, SpiderRock Connect facilitates better matchmaking, ensuring more competitive pricing and faster trade execution.

Prototype to Production

SpiderRock began exploring the space with an initial prototype and recruited the help of Spantree to diagnose existing issues, develop a long-term project plan and make suggestions aimed at modernizing and scaling the trading tool toward production.

Engineering for Performance

SpiderRock processes billions of daily market events to allow its customers to make informed decisions. Spantree integrated with SpiderRock’s existing data platform to ensure the system could efficiently handle and update vast amounts of financial data in a rich UI. This enabled traders to see the most current market conditions and trading opportunities nearly instantaneously.

Engineering for Complexity

In concert with the SpiderRock design team, Spantree worked to build an intuitive interface, capable of adjusting to traders’ strategies. We developed a customizable and interactive workflow that streamlined the process of managing large and nuanced orders. We also developed a set of tools and libraries for SpiderRock’s own developers to extend the system as new use cases emerge.

Engineering for Security

Given the sensitivity of data and user actions, it was essential to integrate SpiderRock’s comprehensive security measures across every layer of the architecture. Spantree worked to incorporate authentication methods to safeguard sensitive data at the last mile, ensuring compliance with stringent standards that govern financial transactions.

Business Impact and Value Delivered

By addressing the complexities inherently associated with options trading and block trades, SpiderRock Connect delivers substantial business value. It reduces the time and costs associated with trading, minimizes errors, and offers scalable solutions to traders’ most pressing challenges. The platform not only enhances operational efficiencies but also empowers traders with tools that can adapt to the evolving markets, thereby asserting SpiderRock’s leadership in financial technology.

Refining the Solution

Spantree leaned on SpiderRock’s years of trading expertise but did not hesitate to ask focused questions which ultimately sharpened SpiderRock’s thinking about their product. In order to deliver a valuable software solution it is necessary to be able to see the problem being solved from the perspective of end users.