Posted on April 4, 2016 by Paul Blank
Interesting comparison from GreySpark in their latest research report. Comparing the digital transformation of investment banking to the automation of manufacturing processes in industries such as motor and aircraft manufacturers.
Their report draws analogies, between investment banking, and the motor and aircraft industries, which also experienced heavy regulatory burden, regular government interference, ever evolving demand patterns, regular bouts of over-capacity and a critical requirement to pool resources in order to innovate.
In their opinion, banks will reinvent their operating models on three pillars:
- A fully-automated manufacturing plant for the creation, assembly and packaging of financial products and services.
- A multi-channel distribution franchise that provides a consistent user experience for all interactions between the bank and its clients.
- Data managed as an asset across the entire supply chain.
The adoption of this new operating model has significant implications:
- Investment banks’ supply and value chains will invariably extend beyond the enterprise and incorporate suppliers, partners, market infrastructure and shared utilities.
- The number of joint-ventures and strategic alliances between complementary institutions will multiply as banks focus on their core expertise, client franchises and geographies.
- As value creation will be effectively distributed across functions, the manner in which it is accounted for will also change – determining where key decisions are made and how individual contributions are rewarded.
Link to report here (behind paywall):
Filed under: Paul Blank, Regulation, Survey Results, Technology Trends | Leave a comment »
Posted on January 5, 2016 by Paul Blank
I have covered the rise of ‘non-bank’ or ‘alternative’ market-makers a few times recently, notably here, here and here.
Looking at how, armed with market leading technology, talented etrading techies from sell-side firms and teams of razor-sharp quants, these firms are now providing deep consistent liquidity to the market in a capacity previously the preserve of the top-tier ‘flow’ monster’ banks.
The perception of non-bank market makers has traditionally been Continue reading
Filed under: alternative market maker, FX, Paul Blank, Regulation, Technology Trends | Leave a comment »
Posted on January 2, 2016 by Paul Blank
Just finished reviewing an interesting Celent report by Brad Bailey, on evolving spot FX market structure and technology trends in light of changes in global regulation, a blurring of traditional liquidity pools and the ongoing competitive landscape.
Brad touches on a number of the themes we have covered here over the year, but it’s always good to have someone else’s perspective on them.
The themes covered being: Continue reading
Filed under: FX, MDP, OTC, Paul Blank, Regulation, Single-Dealer Platforms, Survey Results, Technology Trends | 1 Comment »
Posted on November 2, 2015 by Paul Blank
Blythe Masters ex-head of commodities at JP Morgan now runs a Blockchain startup call ‘Digital Asset Holdings‘, which uses digital technology to enhance settlement and recording of both digital and mainstream financial assets. Last week, the company acquired ‘BlockStack.io‘, which offers blockchain as a service (perhaps BaaS, or BCaaS).
Again for those Continue reading
Filed under: Paul Blank, Technology Trends | Leave a comment »
Posted on October 8, 2015 by Paul Blank
Sales Traders have traditionally been poorly served in terms of dedicated sales trader GUIs. This I think is related to salespeople being overly protective of their client relationships, and fearful that quoting clients electronically would in some way result in them being disintermediated by the machine.
Preferring instead to trade with clients by phone, thus ‘protecting and enhancing their personal ‘high touch’ relationship’ with the client. As a result, Sales GUIs never really received the attention they deserved, or needed.
Well, that’s going to change, for a variety of reasons, the main ones being: Continue reading
Filed under: FX, Paul Blank, Regulation, Technology Trends | Leave a comment »
Posted on October 4, 2015 by Paul Blank
Came across this white paper from Greenwich Associates (from Jun 15) on the adoption of HTML5 within financial markets.
The report is based on interviews with 149 financial institutions, and found that technologists are rapidly shifting their focus toward the application needs of users, rather than the underlying operating system (OS). The focus is now on ‘The cloud, HTML5 and mobile’ (as was clearly identified in Caplin’s HTML5 in 2013: Where Next? and Trading on the move white papers).
HTML5, is swiftly proving itself by delivering native, real-time financial applications that are OS and device agnostic. However, many who are unsure about even the near-term future of their OS and device requirements still aren’t devising an HTML5 strategy. This lack of planning may leave many ill-prepared for an OS or device upheaval within their firm.
Windows 7 still main desktop OS within Continue reading
Filed under: HTML5, Paul Blank, Technology Trends, User Experience (UX), Web trading technology | Leave a comment »
Posted on September 30, 2015 by Paul Blank
Ok, I admit I struggle to get my head round Blockchain and distributed ledgers. But what started as the secure transaction transfer mechanism, and record of asset ownership (I think), for Bitcoins may yet revolutionize much of how today’s banking systems operate.
Yesterday, another 13 of the world’s largest banks, bringing the total to 22 (including: Barclays, BofA, Credit Suisse, Deutsche, Goldman, HSBC, JP Morgan, M Stanley, Goldman, RBS, UBS and others), joined a partnership to design and apply distributed ledger technologies and develop commercial applications for the global financial markets. The project will seek to establish consistent standards and protocols for the technology in order to facilitate broader adoption and gain a network effect.
The partnership is being run by R3CEV, a Financial Innovator, whose CEO Continue reading
Filed under: FX, Paul Blank, Technology Trends | 1 Comment »