Single-Dealer Platforms to retain multiple execution sources


Comments on:

Bank of America looking to whittle 50 trading platforms down to one

Noticed this interesting article regarding the potential consolidation of trading platforms in investment banks FX and derivatives today. http://news.efinancialcareers.co.uk/newsandviews_item/newsItemId-31341.

The suggestion here is that Single-Dealer Platforms have been used to sit across these multiple, somehow duplicating, execution services as a perhaps less efficient way of unifying these capabilities.

However, my experience has been that investment banks often have good reason to concentrate systems on particular execution work flows and that having these as independant areas of electronic trading manufacturing allow a more responsive approach to market demands. The single-dealer platform is a distribution and service layer for this manufacturing, allowing for a an increasingly important decoupled architecture.

Of course, if a common framework can be used for related trading systems it would help with integration of the execution pieces but most succesful single dealer platforms now encompass execution for multiple products and asset classes to go with pre and post trade content and serving all this from one trading system is not going to happen for a long time to come.

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