The Evolution of MicroHedge
SunGard Trading Systems' MicroHedge has provided options pricing, trading and risk management solutions for the last 12 years. Today, some larger SunGard Trading Systems' clients possess hundreds of MicroHedge units, while other smaller clients utilize a few MicroHedge units at a time. More than 4000 traders use MicroHedge, many in the United States, with others in Asia and Europe.
Two brothers, Dennis and Daniel May, started MicroHedge in 1990. Dennis had previously worked as an options trader on the Chicago Board of Options Exchange (CBOE) and his brother Daniel was a systems architect. With a detailed understanding of their trading colleagues' needs, they designed a system to meet the demanding requirements of floor-based traders.
The MicroHedge product was refined over time as the company gathered constant feedback. The application grew, enabling MicroHedge to significantly expand its numbers and expertise. As a result, a significant number of traders at the Chicago Board Options Exchange (CBOE) began using MicroHedge either on the trading floor via a handheld computer or in the upstairs office via a desktop computer.
Screen-Based Trading and MicroHedge
MicroHedge's genesis from the floors of the American options exchanges was always coupled with a screen-based version, back at the office. From relatively early on, the trading floor and upstairs office were linked in real-time so senior traders and risk managers could monitor the activities of their floor-based counterparts. The application quickly produced risk reports, profit and loss figures, and portfolio matrices - all of which included sophisticated use of option "greeks".
Today, the traditional floor-based exchanges in the United States have entered a period of rapid evolution. Screen-based trading via electronic exchanges, ECNs and other entities are all transforming the financial landscape.
SunGard Trading Systems is regularly in discussions with its clients about how this fundamental shift to screen-based trading will affect them - and how MicroHedge will continue to maximize its clients' competitiveness in this ever-changing arena.
Additional Product Information
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