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.
Trading In recent years, exchange-traded funds (ETFs) have seen phenomenal activity and growth. Regulation, product innovation and investor appetite have driven global Assets under management (AUM) to record levels, while also fueling increasing market structure complexity and straining trading platform capabilities across the board. Itiviti, in conjunction with GreySpark Partners, recently engaged in a comprehensive review […] May 18, 2017
Trading Videos from the ETF panel held at FOW Trading Amsterdam 2017. ETFs are big business in the US but elsewhere take-up has been slower. This is now changing as investors seek to gain lower cost exposure to global trends. Regional competition is hotting up as exchanges vie to build regional hubs for ETF trading. But […] May 16, 2017
Trading Chris Anderson, Senior Product Manager at Itiviti, talks to FOW Amsterdam about current trends in the ETF space, the potential for future growth and Itiviti’s commitment to providing solutions to the biggest challenges seen in the market. Download the full white paper May 11, 2017
Trading As continued strong growth is predicted for Exchange-traded funds (ETFs), the marketplace is also becoming increasingly complex. Itiviti has thus engaged with GreySpark Partners in a comprehensive review to map the key factors that will shape the future of ETF trading. The resulting whitepaper covers the competitive and regulatory issues facing ETF market participants in […] May 8, 2017