24 August 2017
Find out more

Third party vendors the winners as trading technology trends shift

13 March 2014  |  7116 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  |  4916 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  |  5326 views  |  0 comments | 4 tweets | 4 linkedin
Europe reaches agreement on MiFID reforms

Europe reaches agreement on MiFID reforms

15 January 2014  |  8399 views  |  1 comments | 6 tweets | 5 linkedin
HFT makes markets more efficient - ECB paper

HFT makes markets more efficient - ECB paper

06 November 2013  |  6288 views  |  0 comments | 5 tweets | 7 linkedin
Europe nears agreement on HFT rules

Europe nears agreement on HFT rules

23 October 2013  |  6880 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  |  8184 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  |  9357 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  |  8766 views  |  0 comments | 7 tweets | 5 linkedin

Related blogs

Create a blog about this story (membership required)
visit www.vasco.comvisit www.worldpaymentsreport.comvisit www.niceactimize.com

Top topics

Most viewed Most shared
Rabobank constructs physical model to understand IT architectureRabobank constructs physical model to unde...
21395 views comments | 44 tweets | 88 linkedin
Barclays pairs banking data with third party apps for SmartBusiness DashboardBarclays pairs banking data with third par...
12106 views comments | 22 tweets | 35 linkedin
Australia regulates digital currenciesAustralia regulates digital currencies
11497 views comments | 21 tweets | 35 linkedin
RBS to bring Silicon Valley to EdinburghRBS to bring Silicon Valley to Edinburgh
11279 views comments | 10 tweets | 8 linkedin
hands typing furiouslyWhy Is Risk Analytics Important?
10914 views 0 | 7 tweets | 1 linkedin

Featured job

Competitive
New York, NY - USA (some flexibility on location)

Find your next job