Mobile trading on the move says survey


After some unexpected results in 2017, the latest survey of FX traders conducted by JP Morgan reveals a level of enthusiasm for mobile trading that more accurately reflects what we have seen in the field over the last number of years.

JP Morgan has been in the vanguard of mobile FX trading. In that context, the findings of its 2017 survey – most notably, that fewer than one in three (31%) of FX traders were likely to use a mobile trading app – were surprising, particularly when stacked up against feedback from our inaugural FX survey.

Our research underlined the fact that retail banking is far ahead of corporate and institutional banking in terms of using mobile app trading services to reduce the burden on hard-pressed sales teams, with most banks citing regulatory and compliance issues as the major obstacle to the adoption of the technology.

However, the survey showed that the buy-side wants to go mobile and that the sell-side may be underestimating this appetite. We found that while most buy-side firms believed market participants were already demanding the ability to view and manage orders on their mobile, the majority of sell-side firms believed that demand would not reach this level for a number of years.

Data from JP Morgan’s 2018 survey is more in line with our experience, with the number of traders expecting to use a mobile trading app more than doubling over the last 12 months. Almost two thirds (61%) now say they are either ‘extremely likely’ or ‘somewhat likely’ to use a mobile trading app this year. This figure is significant given that 34% of the traders surveyed said their company policy prevents any mobile use.

Much is made of the perceived security and compliance concerns of mobile trading, but the reality is that trading through a phone app and trading remotely on a laptop are no different from a security perspective. Indeed, security and compliance concerns have forced mobile trading solutions to be even more secure.

The effective implementation of mobile management systems requires mobile users in most firms to use secure passcodes to access their phones and secure login to an app using two-factor authentication provides additional assurance. Misplaced devices can be remotely wiped and mechanisms such as authentication patterns at the point of execution have largely eliminated unauthorised trading and errors.

The key feature of mobile trading is undoubtedly usability – clients that prioritise advanced features and extremely competitive pricing are more likely to be drawn to multi-dealer channels or complex desktop offerings.

The mobile experience is much more about making trading easy and convenient and building brand loyalty with corporate clients. Native notifications are also useful, helping clients stay on top of their positions and reducing the need for bank sales teams to call clients to let them know their orders have filled.

Here Comes HTML5 for Financial Markets (Greenwich Associates)


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

How should Investment Banks capitalise on the new Apple Watch for financial trading? (from Caplin’s tech blog)


At Caplin we run two blogs. This business focused blog, and our hugely popular tech blog called Platformability.

The tech blog mainly deals with technology issues, particularly those surrounding agile development and using native web technologies to build high-performance real-time web apps for financial trading.

It also looks at UX design, code testing and occasionally more diverse topics such as the psychology of UX design or how office environments can be, or not be, conducive to productive work.

As the audiences for the two blogs tend to be quite different, we rarely cross-post between the blogs.

However, given that today sees the new Apple Watch going on sale (apparently only in six stores globally), our tech team has marked the occasion by posting a discussion on how the Apple watch might be used by banks in finance, and it’s certainly worth a read.

With the launch of the Apple Watch Caplin wanted to board the wearable tech bandwagon. We wanted to ask the questions why and how should a sell side Investment Bank want to use wearable tech?

How should Investment Banks  capitalise on the new Apple Watch for financial trading?

Here is a link to the full post: How should Investment Banks capitalise on the new Apple Watch for financial trading?

BNP Paribas: New corporate FX Platform ‘Centric’


BNP Paribas has released their new corporate FX platform called Centric.

According to the website:

CENTRIC is a seamless multi-product application based platform, configured not only to optimise efficiency, but help corporate treasurers do business. CENTRIC is a new way to put your organisation’s cash to use – going beyond managing risk and optimising liquidity, and helping you to make your underlying business stronger.

Whether you’re looking for the latest research and market commentaries, cash management services, trade finance products or wanting to execute FX trades and payments. CENTRIC has been designed to offer you increased choice and control of all your treasury business operations from the convenience of a single platform.

The platform comes after the launch of their Cortex platform last year. Continue reading

Can research drive execution? Prove it.


Ask the head of research at any major bank, and they will tell you that their insightful research is a core competence for the bank, and a reflection of their deep understanding of the markets, and a key differentiator and source of added value to clients, and leads to greater execution flows.

But, is that true, and just how can banks metricate the value of research in terms of leading to greater execution, and making their Single-Dealer Platform stickier?

The cost of research used to be ‘bundled’ into the ‘all in’ execution rate for institutional clients, who in return for top quality research, would execute trades through that bank. That’s all changed now, and in order to make more transparent the cost of research from the cost of execution, firms have unbundled the ‘soft dollar‘ costs of research in order to remove potential for conflicts of interest in terms of how and where buy side firms execute trades and their requirement for ‘best execution’, research has now become a major cost centre for banks. Continue reading

UBS Neo-cross asset SDP


The new Single Dealer Platform from UBS called NEO now has its own microsite!

According to Hishaam Caramanli, Global Head of Securities eCommerce the platform:

“Neo is the first truly cross asset investment banking platform, and the first to put people at its centre. Making it easier than ever before for our clients to access our insight and execution capabilities across all our businesses, in the moment and in one place.

I believe simplicity and precision are essential qualities for the next generation platform, and NEO delivers that today” Continue reading

Structured Products: An ideal niche for single-dealer platforms?


At Caplin we are involved in single-dealer platforms (SDPs) touching many asset classes across the OTC and exchange traded space. The biggest single asset class we see is cash FX – many banks are rolling out offerings in this area right now. But we are also seeing increasing interest from institutions who want to provide niche Structured Products offerings, and I think this is a real sweet spot for delivering innovative SDPs.

By way of background, there’s a feature in Structured Products magazine, which sadly requires a full subscription to read it (trial subscriptions don’t work): Structured Products and Single-Dealer Platforms – Why?
Continue reading