Portware, the premier provider of global, multi-asset trading systems, today shared its predictions for the evolving financial markets in 2012. Based on market research and customer feedback, Portware has highlighted several market-defining technologies and shifting regulatory reforms as drivers for sweeping changes among trading firms this year. These include:
â¢ Accelerated cloud services adoption: Large numbers of financial services companies will adopt cloud-based trading services that offer enterprise-class trading functionality, performance and reliability. Driven by the need to lower total cost of ownership and ensure fast time to market, trading firms will turn to solutions that can be quickly deployed, require no on-site maintenance and can be accessed from any global location.
â¢ Continued growth of electronic FX trading: The buy-side will continue to drive significant FX trading growth, as traditional asset managers in particular take greater control over their order flow, abandoning custody management models and adopting advanced FX trading solutions. In response, asset managers will demand increasingly advanced functionality from their trading solutions, including intelligent liquidity aggregation; integrated algorithmic trading strategies; streamlined workflow integration, compliance and straight-through-processing; and analytics and TCA.
â¢ Advances in analytics and visualization: The market has seen widespread adoption of advanced pre-, post- and real-time analytics. Firms now regard these tools as critical to their trading operations, but the proliferation of these services has created integration and workflow challenges. Seeking to streamline these processes, the buy side is pushing to aggregate all TCA and analytics services in a single trading environment and use advanced visualization toolsets to view and act on complex data sets in real time.
â¢ Proliferation of electronic trading in emerging markets: As exchanges modernize, brokers upgrade service offerings and regulations are adjusted, there will be an increased demand for advanced trading solutions that allow firms to easily trade in emerging and international markets. These solutions must be able to provide data, risk management and compliance services specific to each regional marketplace.
â¢ Increased demand for multi-asset trading solutions: As the global markets become increasingly interdependent and electronic trading continues to grow across all asset classes â including fixed income and other OTC markets where voice broking has traditionally dominated â buy-side firms will seek out trading systems that support advanced cross-asset algorithms and auto-hedging strategies. However, the advantages of multi-asset systems are not limited to front-end trading. Larger asset managers will realize significant operational and workflow integration efficiencies by deploying a common trade architecture across multiple desks.
â¢ Focus on integration: This year buy-side firms will focus on increasing efficiencies and reducing operational risk by adopting trading solutions that easily integrate with all order management systems and other downstream workflow applications. Creating a fully transparent, front-to-back trading solution will address compliance requirements, reduce costs and simplify trading operations at every point in the trade lifecycle.
Scott DePetris, COO of Portware, comments: âGlobal attention on the financial markets and the developing regulatory landscape will drive fundamental changes in the way trading firms operate in the next twelve months. As they continue to consolidate and rationalize operations, firms of all sizes will push for cloud-based, integrated solutions that simplify workflows, increase operational efficiencies and boost performance on trading desks worldwide, all while meeting regulatory requirements and lowering total cost of ownership.â