Horizon Software, a provider of electronic trading solutions and algorithmic technology, and ULTUMUS, a provider of data services for index and ETF products, announced today they extended their partnership to enable the pricing, sourcing and trading of ETFs with a comprehensive dividend dataset integrated within the Horizon solution.
Horizon began its partnership with ULTUMUS in 2017 and, during that time, the two companies have collaborated to combine the strengths of Horizon next generation trading system with ULTUMUS’ single source of global ETF data. This successful partnership has proven the importance of a single point for analysing and implementing ETF trades, allowing investment banks and traders to quote trades more effectively, with improved accuracy and performance. The two companies will build on this initial partnership to allow Horizon clients to onboard additional source of dividend forecast data for amount and date estimates.
Giles Sarton, Head of Business Development at ULTUMUS says: “ULTUMUS complements Horizon’s leading electronic technology with a single source of global ETF data. Partnering with Horizon is a great opportunity for us to serve new market makers and traders with the most complete set of ETF reference data and pursue our fast expansion. Aggregating and distributing additional ETF dividend forecasts data on top of index and reference data, all as a single source, will strongly benefit Horizon’s client base in terms of trading performance, flexibility and accuracy.”
Indeed, the ETF’s trading universe is vast. Thousands of ETFs can be managed. Key challenges include composition management- understanding each constituent of the ETF, and pricing- the price at which investors can buy or sell an ETF on an exchange.
And as Sylvain Thieullent, CEO of Horizon Software puts it: “One of the major challenges for our clients today is getting a fair price in a timely manner; it has come to be a real challenge to price each ETF, especially the less liquid ones. ULTUMUS has proven to be a very powerful and fast solution to aggregate and distribute index composition, reference and dividend forecasts data for ETFs. Our partner has always invested in innovation to offer cutting-edge and flexible technology solutions, which is in line with our own strategic direction.”
An exchange-traded fund (ETF) is a type of security that involves a collection of securities—such as stocks—that often tracks an underlying index, although they can invest in any number of industry sectors or use various strategies. ETFs are in many ways similar to mutual funds; however, they are listed on exchanges and ETF shares trade throughout the day just like ordinary stock.