Top 10 Trading Solution Providers in Europe 2019 The trading industry is currently recalibrating its business models concerning sellside derivatives and structured products, aiming to recover from the regulatory changes that occurred during the post-financial crisis as well as the shrinking volatilities in the global cash equities markets. The mentioned incidents led to the consolidation of the futures commission merchant (FCM) sector from 2008 to 2010 compelling them to offer full issuance, pricing and market-making services to the buy-side clients, both on- and off-exchange. As such, organizations are looking for solutions suited to support the transformation in the global marketplace.
As businesses experience the constant brawl of the bull and the bear, CFOs are making their bids toward technology best-practices, combined with their in-house legacy systems that boast of third-party augmentation and strategies. Buy-side entities are recommending models to traders, based on their Request for Quote (RFQ) data. Mining and analyzing this data, buy-sides will be able to identify trader-behavior and suggest better trading options. On the other hand, sell-sides are offering lucrative prices for trade. Leveraging smart algorithms to spot liquidity and block trading possibilities in the market, entities are adopting tools to enhance the holistic trading and price discovery process. According to trade enthusiasts, cryptocurrencies and the entire tokenization wave will see their destiny this year. As more traders take interest in Bitcoins and other forms of virtual money, it is important that they attain a deeper understanding of these new asset categories, along with the regulations associated with them, in order to realize their full potential. With the digital transformation penetrating into the small market sector as well, The Markets in Financial Instruments Directive and The Markets in Financial Instruments Regulation (MiFID II) along with Brexit Planning are in control, implying more investment in business innovation. Operational platforms will enable collaboration between teams, consequently promoting seamless workflows that drive productivity.
Buy-sides will significantly observe more efficiency in completion of their tasks, thanks to data-driven processes, accelerated with advanced automation. Traders can hence, focus on alpha generation, thereby empowering buy-sides to multiply their incomes instead of just saving them. The ever-evolving role of buy-sides will demand better performance, simultaneously making way for improved block trading schemes and algorithms for liquidity solutions. While intelligent automated execution and liquidity sourcing find a bigger place in the industry, buy-sides will be capable of delivering enhanced execution of trading processes.
All of the trends mentioned will undoubtedly make trading an enjoyable experience. However, with increasing cyber threats security is being considered the foremost objective to be achieved. Global regulators and UK’s FCA are working toward framing steps that would mitigate risks.
While cutting-edge technology ensures quality for the trading industry, it is an uphill task for organizations to decide on one from the wide assemblage of trends. To make this task easier, a distinguished panel comprising CEOs, CFOs, CIOs, VCs, Analysts and the editorial board of Capital Markets CIO Outlook has selected a list of trading solution providers. We present to you Capital Markets CIO Outlook’s “Top 10 Trading Solution Providers in Europe 2019.”