Single-Dealer Platforms grow in importance


It is interesting that, following Paul Blank’s post on May 29th suggesting that single-dealer platforms are fighting back against SEFs, the audience at yesterday’s Waters webcast seemed to agree.

Yesterday (June 7 2011) Waters hosted an audio webcast entitled, “Regulation and OTC e-Commerce: Future-proofing your systems”. Sponsored by Caplin Systems, and hosted by Rob Daly, editor of Waters’ publication Sell-Side Technology, the panel for the webcast included Stéphane Malrait of Société Generale, David Bullen of Citi and Nick Green of Crédit Agricole.

The first audience participation question was, “Do you see a direct electronic channel to market being 1) more or 2) less important in this new regulatory environment?”

82% of the audience decided that in the new regulatory environment a direct electronic channel to market will be MORE important than it is now.

This is clearly good news for those of us engaged in building electronic channels to market for broker/dealers.

For those who missed it, an on-demand recording of the full audio webcast will be available online in a week or so. As soon as it’s available I’ll post the link.

How should you approach building an SDP?


When you decide to build a single-dealer platform (SDP) there are a number of things you must consider, and some decisions you need to make very early on.

The first thing to consider is whether you’ve got the entire supporting infrastructure in place already or not. While an SDP is clearly a piece of technology that sits inside the bank’s internal infrastructure, it doesn’t usually replace any underlying trading, pricing or permissioning systems that you currently use to trade. These systems will already provide trading functionality and connect with your middle and back offices for risk management, reconciliation, clearing and settlement. An SDP sits on top of these systems and manages the presentation of their functionality to the end-user via the Internet and some form of local application, usually a Rich Internet Application (RIA).

You need to decide how much you’re going to build yourself, and how much you can buy ready-built. Clearly SDP’s don’t just work “out of the box”. If that’s what you’re looking for – an out of the box solution with little differentiation from your competitors – you could simply white-label a complete system, such as those from the multi-dealer portals.

But let’s assume you are looking for your own, differentiated channel to market – something that demonstrates things like your depth of expertise in a part of the market, or your knowledge of the issues and situation of their local geography, or both. This might include workflow-driven execution, using relevant news, pre-trade analysis, market analytics, indices and products other than the main asset class for which the SDP may initially be being built. It might include unique products, or innovative customer-focussed tools that drive clients to your platform and keep them there. This is the interesting stuff – your value add.

Continue reading

Single-Dealer Platforms: In depth coverage in e-Forex magazine


The July 2010 edition of e-FOREX magazine includes an excellent article “Special FX – building a new breed of trade execution platforms” – this touches on a whole variety of areas including multi-asset trading, increasing product complexity, connectivity and STP issues, whether lower latency is relevant or even achievable, the change in the relative use of multi-dealer and single-dealer platforms and the adoption of Web technologies and rich internet applications (RIAs) in single-dealer platforms.

All in eight pages – a really good read.

If you have a print copy of e-FOREX then turn to page 112 (page 114 of the digital edition and page 59 of the full PDF edition) and you’ll find that journalist Nicholas Pratt has encouraged Continue reading

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