GreySpark: Buyer’s guide for cross-asset e-trading tools sets new expectations

Dan Barnes
Russell Dinnage, head of the Capital Markets Intelligence Practice, GreySpark.

Analyst firm GreySpark has released a new report on vendor-provided cross-asset e-trading solutions as a buyer’s guide to help traders, resetting expectations for the capabilities systems can provide.

The report is built on a survey of participating technology vendors, who provided self-assessments of the depth and breadth of their cross-asset e-trading solutions across 97 instruments and products types tradable on a listed and on an OTC basis in the cash equities, cash FX, commodities, derivatives, fixed income and credit, and structured products asset classes.

It covers systems from both a buy-side firm and sell-side institution perspective and across 11 functional groupings and 213 granular functionalities.

The GreySpark-assessed outcome of the findings of the cross-asset e-trading vendor solutions survey show that, in 2021 no single system can provide the functional capabilities coverage required to allow traders to switch processes and workflows seamlessly between any or all asset classes at will.

Report author Russell Dinnage, head of the Capital Markets Intelligence Practice at GreySpark, also found that the lessons learned through the shortcomings of the new technology produced since 2010 “show that the markets coverage costs rationalisation objectives of trading businesses are more readily achieved when they move away from the rationale that a cross-asset or multi-asset class trading system must achieve the possibly impossible goal of covering all asset classes, products and instrument types all the time.”

The report notes that “the implication therein is that off-the-shelf technology vendor-provided solutions can cover only part of the cross-asset e-trading needs of a trading business, and thus buy-and-build offerings represent a better approach to reaching the functional capabilities breadth that those businesses require.”

The document, which is available to buy here, covers the functional capabilities of nine buy-side and sell-side cross-asset e-trading solutions vendor offerings:
o ARQA Technologies Quik;
o Fidelity International Systems (FIS) Global FIS Cross- Asset Trading and Risk Platform;
o Gatelab traderpath;
o Horizon Software The Horizon Trading Platform;
o Itiviti Group UL OMS;
o Quod Financial The Quod Adaptive Execution Platform (AEP);
o smartTrade Technologies LiquidityFX & SmartFI;
o TradingScreen TradeSmart OEMS; and
o valantic Trading Solutions FSA iQbonds / iMarket / iQrepos / iQderivatives.

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