Research On The Application Of IT Project Management In The Development Of ETF Quantitative Market-making System

Along with the fast development in the financial industry,quantitative investment hasbeen introduced to the public to manage financial risks while pursuing continuous investment profit.Quantitative trading has been growing quickly since 70 s last century.It has become a mainstream investment method on the global financial market due to the long history in the development of securities,foreign exchanges,and futures market,and the maturity of the system.There are always a large number of trades happening in quantitative trading.Therefore,traditional mathematical models and tools are not qualified for the demand of the market any more.By means of the IT technology,algorithmic trading is widely applied on the basis of data tools and algorithms.Especially ETF market makers need such complete quantitative trading systems in the simultaneous trading in stocks and ETFs.Thus,more and more institutional traders joined the big team of algo trading,organizing their IT teams to build their own strategies design and trading platform.However,since these IT projects are supported by some outer teams or their own IT sectors,together with the lack of unified procedures and planning,difficulties in efficient communication among team members,and too-many details in strategies and risk control,it always results in unequal distributions in development jobs,slow progresses,repeated changes on the item requirements,and mistakes which lead to repetition in work.This largely decreases efficiency and speed in development work,wasting a lot of labor and company resources.Many interested companies,thus,hesitate in developing their own systems.Quantitative trading system development is a typical IT project.In this paper,we analyze the basic structure,core idea,methodology,and tools of IT project management.Moreover,we analyze the differences between IT project management and traditional project management,and perform risk analysis by means of the ISM Method.By summarizing the comparisons,we value if the IT project management plays a positive role in building quantitative trading system.The case,IT project management method implementation in the ETF market-making quantitative trading system,demonstrates the process,methodology and skills in IT project management application.According to this case,the IT management core ideas,methodologies,procedures and tools exacted in a scientific way,can be applied in quantitative trading and executions.By optimizing the system development procedure,the risks can be well controlled in order to improve efficiency and reduce waste on the resources.In the last section of the paper,by summarizing the project development,we list key items and give advices on IT project management while developing financial equities trading systems,including aspects in human resources management and communication management.