Paul Caplin talks to Kevin McPartland about SDPs

On November 9th Paul Caplin was interviewed by Kevin McPartland, senior analyst at the TabbGroup about the evolution of single-dealer platforms and their conversation was recorded for the TabbFORUM.

The six minute recording is now available by clicking here.

Banks not embracing “social” media

A single-dealer platform (SDP) is, among other things, a way for a bank to interact one-on-one with its institutional clients; indeed some of our SDP customers have asked us to include chat capabilities and other social media feeds into their SDP interfaces. With that in mind I thought I’d sit in on the Finextra live webcast from Sibos Amsterdam yesterday on Social Media and Financial Services.

Sadly it became clear that while the banks are embracing the “media” piece, they aren’t really using the “social” aspect of Social Media. Mostly they appear to be using it as yet another broadcasting channel rather than an opportunity to truly interact with their customers. Take as an example – Citi, who proudly claimed that marketing via Twitter drove up visits to their Sibos microsite – while that’s clearly a result, it’s also an opportunity to converse with their customers missed. Continue reading

Ballmer, CEO @Microsoft: “The world is going the HTML5 path, and so are we.”

From Gartner Symposium; tweeted by @Gartner_inc at 16:33 BST today. View original Tweet.

The UX you can’t see

You may not have noticed that over the summer Barclays Capital announced that it had launched a Compactions Manager for BARX Fixed Income, a single-dealer platform built using Caplin Trader.

As Barclays Capital’s press release describes it:

Compactions Manager, available exclusively on BARX Fixed Income, allows clients to collapse interest rate swap portfolios, including both assignments and unwinds, with more ease and efficiency. This groundbreaking development on BARX, the firm’s award-winning electronic trading platform, gives clients superior control over the management of their derivatives portfolios.

This is a great example of a bank identifying a particular function that’s vital to its clients (and the workflow that’s associated with it) and incorporating it into the user experience (UX) it provides to them.

It’s a concrete example of UX being used as a differentiator with real competitive advantage – at least until all the other banks with FI SDPs copy BarCap. It also clearly shows that UX goes much deeper than a pretty user interface (although BARX FI has one of those as well).

Aité Group publishes report on SDPs

I’m delighted to see that Aité Group has published a research report on Single-Dealer Platforms. “Growth of Single-Dealer Platforms: Know Your Customer!” is the first report that we know of that covers this growing area of technology use in investment banking.

Check out further details on Aité’s website:

Adoption of SDPs in Fixed Income

Following Paul Blank’s post in May of this year about the market share of single-dealer platforms vs multi-dealer platforms, I’ve been looking at a number of industry surveys, and the thing that leaps off the page at me is the growth in the adoption of electronic trading for Fixed Income products, and in particular the growth in the use of single-dealer platforms for this asset class.

According to the Barclays Capital “2009 Survey on Electronic Trading” 96% of those surveyed who trade OTC derivatives expect to trade the same or a higher proportion electronically over the next 12-18 months compared to the trade volumes to date.

And data we’ve extracted from the SIFMA 2009 Trends Survey (included below) clearly shows that the preferred channel showing the largest year-on-year growth in every asset class is single-dealer portals, with multi-dealer and exchange channels mostly staying the same or reducing (CDSs are the exception where exchange channels have grown in preference). The SDP year-on-year growth varies from 50% in CDSs to over 600% in US Treasuries. Admittedly the absolute proportion of FI business conducted through single-dealer channels is small, but it’s growing more quickly than any other channel, as this data shows.

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