SingleDealerPlatforms.Org

Earlier today in the elegant surroundings of Rhodes 24 on the 24th floor of Tower42, Caplin and Lepus presented the findings of a survey into eCommerce in the Capital Markets.

The survey was sponsored by Caplin and conducted by Lepus at the end of last year. 30 major US, European and Asian banks took part, and typically the respondents were heads of IT or heads of eCommerce. The survey was supplemented by some in-depth one-on-one interviews.

The survey investigated the implementation of single-dealer platforms (SDPs), the reasons behind that, and whether trading volume really is moving to SDPs from multi-dealer platforms. If you’d like your own copy contact us via the Caplin website.

Tier 2 banks: The conclusions

For Tier 2 banks, the survey’s conclusions confirm the empirical observation of trends that Caplin is seeing in the market place – that Tier 2 banks are using SDPs to enable them to differentiate themselves in the marketplace and those banks are seeing trading volume move from multi-dealer to single-dealer venues.

Tier 1 banks: The conclusions

The survey conclusions suggest that Tier 1 banks are largely happy with their current SDP offerings, and aren’t seeing much, if any, move towards SDPs. This contrasts with our observation that most Tier 1 banks are working on enhancements to, or new implementations of, their single-dealer offerings. Perhaps since all the Tier 1 banks already have SDPs, they really are largely happy with their systems, and the work they’re doing is merely enhancing those offerings? Many Tier 2 banks either don’t have SDPs or have rudimentary ones for FX only – so there really is a trend of greater investment in SDPs by the Tier 2 banks.

The survey’s detailed conclusions, a sample of which is presented below, were presented over breakfast by Robert Smith of Lepus.

Rob’s presentation was followed by a lively discussion and short presentation on the second generation of single-dealer platforms by Paul Caplin.

Paul Caplin’s Presentation

Paul’s presentation compared and contrasted the results of the Lepus survey with the trends that Caplin is seeing in this marketplace – these include the increasing necessity of providing a compelling user experience (UX) as a major differentiator, the need to include specialist research and analysis alongside execution, the integration of the SDP with mid- and back-office processes and the drive towards offering SDP functionality, both access and execution, on mobile devices – particularly the Apple iPad.

Overall an interesting and thought-provoking morning.

Again, if you’d like your own copy of the Lepus research survey results, contact us via the Caplin website.

Filed under: Mike Hill, Mobile, Single-Dealer Platforms, Technology Trends, User Experience (UX) |