According to a major study by Tabb Group, the majority of derivatives trading firms plan to revamp or replace their existing trading platforms by 2018.
Rapid changes in the regulatory environment and the growing complexity of market structure in the derivatives industry are forcing firms to allocate their technology spend in this area. ““The challenges facing the derivatives industry are forcing almost every market participant to be nimble and make adaptions for survival,” said report co-author and TABB senior analyst Tom Lehrkinder. “Multi-product, multi-broker, co-location and cross-asset are today’s buzz words while speed, straight-through processing and distributed computing dominates connectivity and post-trade activities. The natural progression is to look to technology as a solution.”
Connamara is engaged with several firms to implement new platforms as this trend gathers momentum and preparing for further discussions as budgets are set for 2017.