The continual rise of non-bank market-makers.


I have covered the rise of ‘non-bank’ or ‘alternative’ market-makers a few times recently, notably here, here and here.

Looking at how, armed with market leading technology, talented etrading techies from sell-side firms and teams of razor-sharp quants, these firms are now providing deep consistent liquidity to the market in a capacity previously the preserve of the top-tier ‘flow’ monster’ banks.

The perception of non-bank market makers has traditionally been Continue reading

Interesting Celent report on future of Spot FX trading technology & platforms


Just finished reviewing an interesting Celent report by Brad Bailey, on evolving spot FX market structure and technology trends in light of changes in global regulation, a blurring of traditional liquidity pools and the ongoing competitive landscape.

Brad touches on a number of the themes we have covered here over the year, but it’s always good to have someone else’s perspective on them.

The themes covered being: Continue reading

From FT yesterday: Banks seek the key to blockchain


Blythe Masters ex-head of commodities at JP Morgan now runs a Blockchain startup call ‘Digital Asset Holdings‘, which  uses digital technology to enhance settlement and recording of both digital and mainstream financial assets. Last week, the company acquired ‘BlockStack.io‘, which offers blockchain as a service (perhaps BaaS, or BCaaS).

Again for those Continue reading

SalesTrader dashboards


Sales Traders have traditionally been poorly served in terms of dedicated sales trader GUIs. This I think is related to salespeople being overly protective of their client relationships, and fearful that quoting clients electronically would in some way result in them being disintermediated by the machine.

Preferring instead to trade with clients by phone, thus ‘protecting and enhancing their personal ‘high touch’ relationship’ with the client. As a result, Sales GUIs never really received the attention they deserved, or needed.

Well, that’s going to change, for a variety of reasons, the main ones being: Continue reading

Here Comes HTML5 for Financial Markets (Greenwich Associates)


Came across this white paper from Greenwich Associates (from Jun 15) on the adoption of HTML5 within financial markets.

The report is based on interviews with 149 financial institutions, and found that technologists are rapidly shifting their focus toward the application needs of users, rather than the underlying operating system (OS). The focus is now on ‘The cloud, HTML5 and mobile’ (as was clearly identified in Caplin’s HTML5 in 2013: Where Next?  and Trading on the move white papers).

HTML5, is swiftly proving itself by delivering native, real-time financial applications that are OS and device agnostic. However, many who are unsure about even the near-term future of their OS and device requirements still aren’t devising an HTML5 strategy. This lack of planning may leave many ill-prepared for an OS or device upheaval within their firm.

Windows 7 still main desktop OS within Continue reading

Blockchain in Finance/trading


Ok, I admit I struggle to get my head round Blockchain and distributed ledgers. But what started as the secure transaction transfer mechanism, and record of asset ownership (I think), for Bitcoins may yet revolutionize much of how today’s banking systems operate.

Yesterday, another 13 of the world’s largest banks, bringing the total to 22 (including: Barclays, BofA, Credit Suisse, Deutsche, Goldman, HSBC, JP Morgan, M Stanley, Goldman, RBS, UBS and others),  joined a partnership to design and apply distributed ledger technologies and develop commercial applications for the global financial markets. The project will  seek to establish consistent standards and protocols for the technology in order to facilitate broader adoption and gain a network effect.

The partnership is being run by R3CEV, a Financial Innovator, whose CEO Continue reading

Moving legacy SDPs to HTML5 (in stages)


Given the ubiquitous ‘write once, deploy anywhere’ nature of HTML5, it’s not surprising that almost all new Single-Dealer Platforms (SDPs) are being written in HTML5.

The trend started a while back, and in his 2013 white paper, HTML5 in 2013: Where Next? (2nd one in the list), Patrick Myles, Caplin CTO identified three key reasons why everyone was moving to HTML5:

  • The move to cloud delivered services and Internet distributed applications has driven the need for lightweight, access-anywhere GUIs.
  • Apple and Google have embraced HTML5 as the future, building new-generation browsers themselves for the first time.
  • The drive to mobile and tablets, and the desire to re-use apps and code across platforms

Although, as Myles pointed out, there are challenges with HTML5, as it lacked many of the enterprise development features and tooling that developers expect and need to efficiently build large-scale, maintainable apps. It’s still evolving, meaning not all features are universally supported. Continue reading

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