Build or buy, it’s all about differentiation

Early this morning, New York time, I and about 40 other people attended the panel “Evolving Platform Technology & New Markets” which was sponsored by Caplin as part of Profit & Loss’s Forex Network tradeshow in New York. As Jennifer mentioned recently, the panel consisted of Raj Iyer of BNY Mellon Global Markets, Thomas Lo of FinaniciaLogix Group and Jose Cadalzo of Caplin systems, all questioned and moderated by Colin Lambert, Editor of Profit & Loss magazine.

The panel at P&L Forex Network

The discussion was wide ranging and touched on what institutional trading platforms can learn from retail traders, FX trading in Japan vs that in the USA, and on how different the requirements for software as a service for a bank might be from the service that Amazon and Google might offer.

However the main point that all of the panelists agreed upon was that when creating a single-dealer platform there isn’t really a choice between building it and buying it – every bank does some of each, but the issue is how much you buy and how much you build yourself.

The conclusion was that there’s very little point in spending time and money building anything that doesn’t differentiate you from your competitors. Differentiation can be in the pricing and the products, it can be in the content and analysis, and it can be in the way that the interface is designed and that information is presented.

An interesting conversation. I’m sure we’ll hear more about this in the weeks and months to come.

New Spot FX platform ‘traFXPure’ – competition for EBS?

Tradition, the Interdealer Broker (IDB), is launching a new interbank spot FX platform called traFXPure.

Supported by top FX banks (including: Barclays, BNP, Deutsche, RBC and UBS), the platform is aimed at creating a ‘fairer’ venue where participants can manage risk, without being ‘picked off’ by the HFT firms.

First mooted almost Continue reading

Evolving Platform Technology & New Markets: A Caplin/ P&L Breakfast Panel

When: 07:45 am, May 31st, 2012

Thomas Lo, CEO & Founder of Financialogix Group

Thomas Lo, CEO & Founder of Financialogix Group

Where: Crowne Plaza Hotel Times Square, 1605 Broadway, New York

Join Caplin Systems at Forex Network New York for this complimentary technology focused breakfast panel.

The panel features experts who will discuss the evolution and future of trading platforms, as well as well as the developments surrounding how technology has lowered the barriers of entry to the marketplace.

• The discussion will focus on the evolution of single-dealer platform technology from the beginning, when traditionally only Tier 1 banks worked to provide their buy-side users with a platform, to the broadening of FX into other markets such as retail that we’ve seen in recent years (amongst many other examples).

• The panel will discuss the specific technological changes that have encouraged this new ease of entry into the marketplace – this will include discussions surrounding the web as a now viable trading platform, SAAS, and the Cloud.

Raj Iyer, VP, Global Markets Product Management, BNY Mellon

Raj Iyer, VP, Global Markets Product Management, BNY Mellon

Colin Lambert, Editor, Profit & Loss


Raj Iyer, VP, Global Markets Product Management, BNY Mellon Global Markets

Thomas Lo, Founder and CEO, Financialogix Group

Jose Cadalzo, US General Manager, Caplin Systems

*The breakfast panel is free to attend both for those who have registered for Forex Network New York and those who are not registered to attend.

Lodestone – Capital Markets Open Source Project

Banks spend far too much time and resource continually ‘re-implementing’ proprietary infrastructure and plumbing, that doesn’t deliver innovation, or differentiation to clients.

Finance is no stranger to using open source, and now ‘The mighty’ Deutsche Bank (always the visionary), is throwing its weight and talent behind a new Capital Markets Open Source initiative in the form of Lodestone Open Source Foundation.

The principles being: Continue reading

CME Direct – OTC & exchange liquidity in single platform

The CME has released their new offering, CME Direct. Delivered via the web, it combines OTC (broker-liquidity) with CME futures liquidity.

Fully integrated with CME ClearPort, enabling OTC (voice) trades to be submitted for clearing instantly without manual intervention by client, or broker, reducing time and errors. CME Direct is launching initially with CME Group benchmark energy futures and global OTC oil markets, with more to follow.

Michel Everaert, MD CME interview:

Link to CMEDirect webcast

Coverage: CME Direct, PR release and Bloomberg

UBS’s Neo swallows the red pill…eventually

For the past two plus years, UBS has been busy designing and building their next generation SDP, called Neo (microsite here). We understand the platform, due for release early this year, was designed using Adobe Flex as the front-end technology.

HTML5 re-write?

The platform has yet to been released, yet there is much talk in the market that UBS may be re-implementing the front-end in Continue reading

SEF Liquidity Aggregation from Broadway Technology

Broadway Technology, is set to launch a SEF Liquidity Aggregation, STP and e-commerce solution for IRS markets.

According to Joshua Walsky, Chief Technology Officer:

Our technology allows our customers to effectively trade in regulated markets and adapt quickly as they evolve. I’m proud to announce that we will be launching IR Swaps in June and we have already been selected to be an integral part of the SEF strategy for top-tier financial institutions.”

What does this mean for bank Single Dealer Platforms? 

My view: This solution from Broadway, will make it far easier for banks to Continue reading

New MultiBank FX aggregation service ‘FXSpotStream’

A consortium of leading FX banks joins forces to become liquidity providers for a new multibank spot FX price aggregation service, FXSpotStream.

The new service launched today, uses SmartTrade’s technology platform, from an initial co-location site in New York and is supported by liquidity providers including Bank of America Merrill Lynch, Citi, Commerzbank AG, Goldman Sachs, HSBC and JP Morgan Chase.

FXSpotStream was formed last year and is a wholly owned subsidiary of LiquidityMatch. A number of the LiquidityMatch shareholders are liquidity providing banks for FXSpotStream.

Alan Schwarz, CEO (ex COO, ICAP Americas) said:

“FXSpotStream provides banks and clients the ability to communicate bilaterally using a solution that does not interfere with the transaction, is transparent and eliminates the cost of execution. Clients access a single API from co-location sites in New York, London and Tokyo and have the potential to communicate with all liquidity providing banks connected to the FXSpotStream solution.”

Personal View: Sounds to me like the banks are building a ‘utility’, and cutting out the multi-dealer platform middleman fees (will be interesting to see how this affects FXall share price)!

Profit&Loss running with story here:

OUCH! – JP Morgan announced a surprise $2bn trading loss on credit derivatives trading

The FT.Com running with this story here

After markets closed tonight, JP Morgan announced a surprise $2bn trading loss on credit derivatives trading, which chief executive Jamie Dimon blamed on “errors, sloppiness and bad judgement” and warned “could get worse”.

Unfortunately, banks can now forget about any watering down of the Volcker Rules.

More will become clear tomorrow, more on story here and here

EuroMoney 2012 FX Poll Results

The ‘Mighty Deutsche Bank’, has done it again, taking ‘1st place for an impressive 8th consecutive year (2005-12), in the EuroMoney FX Survey rankings.

Key findings:


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