There is a growing market acceptance that trading systems don’t necessarily need to be entirely customized and proprietary in nature to be competitive. As market participants see the complexity of maintaining proprietary trading technology, availability of standards-based low-latency platforms, and the increasing regulatory requirements; firms are re-evaluating how to best deploy and support their technology stack.
At Itiviti, we see a trend emerging where firms buy components and integrate these with existing trading infrastructure. Itiviti customers are leveraging our next generation trading platform in a way that enables them to plug in new capabilities with app-based solutions.
Let’s explore how to take advantage of #BuyANDBuild innovation, how the trend has emerged and how Itiviti offers a viable alternative to traditional development of in-house trading solutions.
Leveraging the #BuyANDBuild concept
While customized trading logic cannot be part of an out-of-the-box solution, there are generic components in any trading system. For example, connectivity to trade on an exchange as well as modules for managing market data, transactions and positions are always required. However, it makes less sense to custom build such functionality as it becomes increasingly commoditized.
Large firms that have traditionally developed software in-house are recognizing that building a full trading technology stack is no longer a requirement for maintaining their competitive edge.
At the same time, smaller players can also benefit from buying and building. Where many firms have long faced prohibitive costs associated with custom software development, they can now afford to implement unique functionality.
Transparency to facilitate customization
While typical hurdles for acquiring third-party systems include an inability to adapt to existing trading infrastructures, lack of control and concerns over performance, Itiviti has designed our next generation platform with these challenges in mind.
For example, Itiviti believes that markets participants need control over the direction of their business. We prove this by offering transparency, including access to business logic source code, which greatly facilitates building proprietary additions.
Finally, knowing there are future market unknowns, all Itiviti platforms and solutions are designed with flexibility in mind. The front end can be adapted to the workflow needs of individual traders, the modular architecture can be adapted to address the context-specific needs of existing infrastructure and Itiviti customers can extend existing execution strategies, pricing logic and user interfaces.
If you are interested in learning more about the #BuyANDBuild trend or about Itiviti’s next generation platform, please visit Tbricks by Itiviti.
Blog The fast pace of derivatives markets makes their participants a demanding group. Derivatives traders must be flexible to succeed, and also need functional capabilities in their technology such as speed, global access and powerful analytics. They confront these needs in an environment affected by new regulation, plus more demands for market access and lower costs. […] April 27, 2017
Blog In the ongoing pursuit of efficiency and cost awareness among market participants, trading technology is often at the center of attention. Still there is at least one key function in trading systems left largely untouched by productivity and streamlining measures, and that is testing. Manual testing of trading infrastructure solutions remains prevalent within today’s financial […] April 20, 2017
Blog The ability to respond rapidly to a new opportunity is a prerequisite for success in derivatives trading. Adding access to a new exchange or electronic execution venue, support for a new security, or compliance to the latest regulatory wrinkle is essential to making sure opportunities are realized and profits are made. As a result, agility […] April 11, 2017
Automation & Testing Whether you are deploying FIX or proprietary protocol components within trading systems, thorough testing is crucial to success. Not only do you need to test your systems for execution venue driven events but also for managing the client flow. Manual testing is a costly and error-prone process that can be significantly improved and accelerated through automated testing. Automated regression […] April 6, 2017