23 October 2017

Third party vendors the winners as trading technology trends shift

13 March 2014  |  7174 views  |  0 Canary wharf buildings

Technology innovation in equity markets has changed direction as the race-to-zero latency and the pursuit of high-frequency trading cools, says capital markets consultancy GreySpark partners

In newly-published research examining trading trends for the year ahead, GreySpark says that the technology focus at most firms now rests on the convergence of high-touch and low-touch trading platforms.

Banks looking to reduce their trading platform costs will simplify and consolidate their platforms where possible, says the consultancy.

GreySpark believes that the coming 18-to-24 months will witness many banks eliminate the need for separate low-touch and high-touch trading platforms as they invest in consolidated third-party vendor offerings.

This belief is furthered by a trend towards independent packaged software as the technology stack has become commoditised, and only those functions that offer a competitive advantage will be maintained in-house.

The research suggests that equity markets are at a turning point as large sellside flow houses and prime brokers prosper again while boutique offerings grow their aggregate market share.

The remaining players, primarily mid-size firms, must adapt and downsize their pre-crisis investments in high maintenance large-scale, industrial trade processing platforms in favour of saas-based and shrink-wrapped plug and play platforms from third party suppliers.

The forecast will be music to the ears of hard-pressed trading technology houses, which have suffered lean pickings over the past five years as equity trading volumes slumped and firms scaled back their tech spending.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Global fixed income e-trading sees tepid growth

Global fixed income e-trading sees tepid growth

20 February 2014  |  4969 views  |  0 comments | 3 tweets | 4 linkedin
Kensho raises $10m to build a Siri-like assistant for capital markets trading

Kensho raises $10m to build a Siri-like assistant for capital markets trading

23 January 2014  |  5413 views  |  0 comments | 4 tweets | 4 linkedin
Europe reaches agreement on MiFID reforms

Europe reaches agreement on MiFID reforms

15 January 2014  |  8445 views  |  1 comments | 6 tweets | 5 linkedin
HFT makes markets more efficient - ECB paper

HFT makes markets more efficient - ECB paper

06 November 2013  |  6342 views  |  0 comments | 5 tweets | 7 linkedin
Europe nears agreement on HFT rules

Europe nears agreement on HFT rules

23 October 2013  |  6941 views  |  0 comments | 2 tweets | 1 linkedin
Algo trading start-up Quantopian secures $6.7 million funding round

Algo trading start-up Quantopian secures $6.7 million funding round

02 October 2013  |  8249 views  |  0 comments | 3 tweets | 1 linkedin
Buy side spending on execution and order management systems rising year-on-year

Buy side spending on execution and order management systems rising year-on-year

20 May 2013  |  9449 views  |  0 comments | 3 tweets | 8 linkedin
Wall Street propeller-heads make way for new generation of data scientists

Wall Street propeller-heads make way for new generation of data scientists

10 May 2013  |  9309 views  |  0 comments | 7 tweets | 5 linkedin

Related blogs

Create a blog about this story (membership required)
visit www.niceactimize.comRegister nowvisit www.atos.net

Top topics

Most viewed Most shared
Mastercard to roll out blockchain APIMastercard to roll out blockchain API
16888 views comments | 20 tweets | 34 linkedin
HSBC partners Bud for open banking trialHSBC partners Bud for open banking trial
14223 views comments | 22 tweets | 30 linkedin
Sibos 2017: API or the highwaySibos 2017: API or the highway
10447 views comments | 12 tweets | 23 linkedin
satelliteGates Foundation backs Ripple collaboratio...
10108 views comments | 13 tweets | 10 linkedin

Featured job

Find your next job