The ‘Hybrid-model’ for Single-Dealer Platforms


Here at Caplin we are seeing an increasing number of regional (tier 2 and 3) banks embarking on new SDP projects.

Unlike the top-tier banks, the regional banks typically don’t have the in-house development skills, resources or budgets, and more importantly they have no desire to build a complete Single-Dealer Platform from scratch. What they are looking for is a hybrid-model, which interestingly, over on Tabb Forum SmartTrade talk about a very similar ‘hybrid model’.

This hybrid model works well for banks looking to deliver an SDP project based on:

a) Limited budgets and resources

b) An existing customer base that requires standard SDP functionality (typically firm streaming ESP and RFS pricing with support for FX spots, fwds, swaps, orders, STPs and dealer intervention workflows)

c) Fast time to market with measurable ROI

d) Ability to customise and extend the platform to support additional products, new client workflows and emerging regulatory requirements, enabling them to retain existing customers and acquire new ones

In many cases, we also see migration of ‘top e-trading’ talent moving to regional banks to provide expertise in managing new SDP projects as mentioned in recent posts here and here.

So, today more than ever, regional banks that embark on new SDP projects are favouring this hybrid model, of buying platforms and frameworks that deliver much of the required functionality as standard. Yet can be customised and extended to deliver additional features and workflows as new business and regulatory requirements emerge.

This is very much in keeping with Caplin’s partnership announcement with Progress Apama.

2 Responses

  1. […] This deal is typical of the increasing trend we are seeing at Caplin, where regional and tier 2 banks rather than buy or build, are favouring the hybrid-model for delivering their Single Dealer Platforms (SDPs). […]

  2. […] This deal is typical of the increasing trend we are seeing at Caplin, where regional and tier 2 banks rather than buy or build, are favouring the hybrid-model for delivering their Single Dealer Platforms (SDPs). […]

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