Trends in e-Commerce and Electronic Trading 2012 – GreySpark Report (plus my thoughts)


GreySpark has just released the results of their Annual e-Commerce Report: ” Trends in e-Commerce and Electronic Trading 2012″.

GreySpark outlines that propositions must now evolve, or sellside franchises will decline. The new regulations have a significant impact on the growth of e-commerce and electronic trading.

Far from merely signing the death warrant of single dealer platforms (SDPs) they are accelerating the transition of more products to electronic trading.

Incumbents must rethink what their platforms do. GreySpark’s research shows that several routes can be followed: multi assets, post trade services and client centric.

Peronal View: In my opinion, the above extract from Bobsguide is incorrect (it may just be a misquote), and in my view should have read:

Far from merely signing the death warrant of single dealer platforms (SDPs) they (meaning the new regulations) are accelerating the transition of more products to electronic trading.

From what we see, in response to Dodd Frank and Mifid, banks are re-engineering their single dealer platforms, in order to continue to deliver highly differentiated services to clients, as discussed in Caplin’s recent white paper Single-Dealer Platforms in a Cleared World

Even though for some products, regulation will mean that execution shifts from bilateral to SEF or OTF execution, nevertheless, we continue to see SDPs as ‘The prime relationship channel’, and the conduit through which clients access:

  • Liquidity and choice of execution (risk, algo, agency routing)
  • Smart order routing to SEFs, OTFs, and optimisation analysis tools
  • TCA Tools, enabling clients to ‘demonstrate’ quality of execution
  • Real-time risk management
  • Post-Trade reporting tools, showing Margin Analysis for cleared products
  • Greater use of ‘app tools’, and richer graphical visualisation tools for much of the above
  • Adoption of HTML5 as outlined in Caplin’s recent white paper
  • And above all, ‘intelligence’ and greater value throughout the trade life cycle

GreySpark report teaser here

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