‘Walk the Line’ looks at the response of large-scale brokers to today’s market challenges
London, 28th November 2012 – Fidessa group plc (LSE: FDSA) has today announced the publication of its latest white paper, Walk the Line: Evolution of the intelligent flow monster.
Following Fidessa’s earlier white paper, Survival of the Fittest: Evolution of the new smart broker, this new paper explores the impact of the same profound environmental changes on the international and super-regional broker community. It focuses on the paradigm shift between these large-scale brokers and technology and examines the new smart decisions that these firms are having to make about where to innovate and where to commoditise.
In the face of growing market complexity, decreasing trading volumes and the on-going churn in global regulation, scale players must look for a better way to manage the rising costs of servicing client demand. In Walk the Line, Fidessa describes how some of these firms are adopting an altogether more intelligent and flexible approach to technology investment.
Steve Grob, author of the white paper and Director of Group Strategy at Fidessa, said: “For scale players, any investment in technology must be focused on developing, protecting and delivering the unique IP that creates competitive advantage and builds brand loyalty. The fundamental transformation witnessed in the markets over recent years means that building and maintaining all aspects of this in-house is no longer viable.”
“The real challenge now is staying on top of what is a differentiator and what should be handled as a commoditised service”, Grob continues. “Not only is this different from firm to firm, but it will also change over time. The delineation between the two must be clear, but it must also be fluid if scale players are to respond effectively to innovation and rapidly shifting market conditions. This is the essence of what we call intelligent scale, and those firms that achieve it will be the winners in the long term.”