Following Fidessa’s earlier white paper, Survival of the Fittest: Evolution of the new smart broker, this new paper explores the impact of the same profound environmental changes on the international and super-regional broker community. It focuses on the paradigm shift between these large-scale brokers and technology and examines the new smart decisions that these firms are having to make about where to innovate and where to commoditise.
In the face of growing market complexity, decreasing trading volumes and the on-going churn in global regulation, scale players must look for a better way to manage the rising costs of servicing client demand. In Walk the Line, Fidessa describes how some of these firms are adopting an altogether more intelligent and flexible approach to technology investment.
Steve Grob, author of the white paper and Director of Group Strategy at Fidessa, said: "For scale players, any investment in technology must be focused on developing, protecting and delivering the unique IP that creates competitive advantage and builds brand loyalty. The fundamental transformation witnessed in the markets over recent years means that building and maintaining all aspects of this in-house is no longer viable."
"The real challenge now is staying on top of what is a differentiator and what should be handled as a commoditised service", Grob continues. "Not only is this different from firm to firm, but it will also change over time. The delineation between the two must be clear, but it must also be fluid if scale players are to respond effectively to innovation and rapidly shifting market conditions. This is the essence of what we call intelligent scale, and those firms that achieve it will be the winners in the long term."
Walk the Line: Evolution of the intelligent flow monster is available through the Fidessa website (http://www.fidessa.com/
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About Fidessa group
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New technology, new regulation, new challenges: making money in today’s financial markets is all about staying ahead of the curve. Having the capability to spot new trends and act fast turns change into opportunity. That’s why 85% of the world’s premier financial institutions trust Fidessa to provide them with their multi-asset trading and investment infrastructure, their market data and analysis, and their decision making and workflow technology. It's also why $10 trillion worth of transactions flow across our global network each year. Because we’re the market leader, we can also offer unique access to the world’s largest and most valuable trading community of buy-side and sell-side professionals, from global institutions and investment banks to boutique brokers and niche hedge funds.
Fidessa is a global business with scale, resilience, ambition and expertise. We’ve delivered around 30% compound growth since our stock market listing in 1997 and we're recognised as the thought leader in our space. We set the benchmark with our unrivalled set of mission-critical products and services and, uniquely, serve both the buy-side and sell-side communities. Ongoing investment in our leading-edge, integrated solutions ensures Fidessa remains the industry's number one choice.