The momentum behind cloud in financial services is building, and quickly. With big names such as IBM moving into the space, it signals that this is the future of financial markets infrastructure. Looking specifically at FX, there are many reasons to believe that firms are shifting towards this technology as a central component of their technology stack.
I think I can say with confidence that 2020 has been the strangest year in my career to date. The FX markets have faced their share of global crises and geopolitical disruptions over the decades, yet nothing comes close to the impact of COVID.
Digital transformation is happening across every sector, and banks in particular are beginning to recognize a digital framework that allows their services to be accessed from anywhere will be key going forward.
The importance of relationships in FX has proved central to institutional trading in recent months. Not that relationship trading ever went away in the FX markets. However, in a clear ‘Back to the Future’ development, the role of the single dealer platform (SDP) is once again having a resurgence.
As pubs and restaurants begin to open their doors in England, so too are the world’s global banking giants. After a prolonged period of working from home, many of the top banks such as HSBC and Goldman Sachs have announced plans to urgently bring workers across the world back into the office.
The question is: Why the rush?
It is true that banks are having to do more, with less budget. Recent headlines have demonstrated we’re currently operating in an increasing cost pressured environment. The solution for some banks has been cost cuts through staff reductions – but is this always the right answer?
With increasing popularity to outsource FX technology at banks, Vikas Srivastava, Chief Revenue Officer at Integral, gets to the core of the matter and explores how to outsource the notoriously complex risk management technology stack.
Integral recently spoke on a Greenwich Associates Webinar discussing the key technology criteria an FX desk at a bank needs to compete. It came as no surprise that during an interactive polling session with the audience, senior representatives from regional banks cited risk management was the hardest component of the FX technology stack to outsource.
In an era where pundits like to predict doom and gloom for banks FX businesses, Integral’s Chief Revenue Officer Vikas Srivastava offers a different perspective that shows how a change in the approach towards technology can allow heads of FX desks to significantly increase their profits – even during the periods of low volatility.
We’re all aware that the size of the FX pie hasn’t been growing. The latest triennial survey by the BIS supports this sentiment, having flagged a decline in FX volumes for the first time in 15 years. After the slow-down in market activity amidst the spate of regulations that the FX market had to contend with it is quite likely that the worst may be behind us. Continue reading Why now is the time for a fresh approach towards FX technology at banks
For many firms, the RTS-28 requirement and the upcoming RTS-27 reports are proving to be a headache. Collecting complex data on this large of a scale and on a detailed level is a complicated effort that requires integrated data science services with a depth of trade data and robust analytics that allow customers to address these regulatory and reporting challenges. Given these exacting standards, cloud-based platforms are ideal in offering the most sophisticated and flexible MiFID II-compliant solutions.
MiFID II continues to present challenging obligations for financial institutions nearly six months since the rule first went into effect. RTS-28, the most recent regulatory hurdle under MiFID II, is meant to ensure transparency and keep firms accountable to best execution policies when transacting on behalf of clients. The reporting standards under RTS-28 require investment firms to disclose their top five execution venues, publish granular details on the execution data obtained at each of these venues, and provide a qualitative review of their best execution policies accompanied by an analysis of how execution is performed. Continue reading Firms Continue to Turn to Cloud-Based Solutions to Comply with MiFID II Rules
Recently, two complex event processing (CEP) technology vendors changed hands. Progress Software sold its Apama CEP platform to Swiss vendor Software AG, and Tibco acquired StreamBase — the last remaining independent CEP vendor.
Both companies were tackling very complex issues in financial services and enjoyed initial success. The founders of Apama sold their firm to Progress Software for $25.4 million in 2005, the year StreamBase launched its first product. What sealed both vendors’ demise was not bad software, but rather a paradigm shift in the software industry.
When you search for the term “cloud computing” on Streambase.com, Google can find only two instances and they are both located in boilerplates of a business partner that is a part of a customer case study. Run the same test on Apama.com and Google responds that the search “did not match any documents”. These are bad signs. Continue reading A Tale of Two Kinds of Companies