Mostly… fixed income and cross product eTrading

April 17, 2007

Fidessa buys LatentZero

Filed under: etrading, OMS / EMS — holky @ 6:46 am

as here and here

With LatentZero reassuring customers that nothing will change for two years under the conditions of the £63m (€92.5m) deal this is clearly a foundation for the long-game. For now LZ will operate as a separate entity within the Royalblue group, and its management team will stay with the company.

Watkins (co-founder of LZ) sees electronic fixed-income trading as part of the future because the liquidity is much more dispersed. He says there is potential to let the sell side share their liquidity on a targeted basis to their clients. “That means we would essentially be allowing both sets of clients communicate with each other on a private basis, as opposed to participating in an ECN or ATS,” he explains. “ I think for certain asset classes that is going to be the way that people want to work,” says Watkins.



  1. I’ve said it before, I’m not against point-to-point but I think the likes of LZ really need to work on their derivatives modules first. What I’ve seen is frustrated clients who are being constrained by systems (not only OMS) regarding Swapos & CDS activity.

    Comment by waratah — April 17, 2007 @ 9:44 am

  2. […] model is key for buyside desktop? One thing Gartner says of the recent RoyalBlue and LatentZero […]

    Pingback by ASP model is key for buyside desktop? « Mostly… — April 23, 2007 @ 6:23 am

  3. […] then there has been little development in this space and indeed corporate actions like LatentZero being taken over by Fidessa will no doubt delay matters […]

    Pingback by Point-to-Point: An Update « Fixed Income E-trading — May 23, 2007 @ 12:55 pm

  4. So, “nothing changes for two years”…

    So, bugs are STILL not fixed. “Relationship management” is a joke. Support is managed by a good person with a revolving door policy on new hires.

    The workflow is still broken.

    The system still does not scale well.

    It still does not handle Fixed Income workflow.

    The answer to most questions is “it’s in the next version, you’ll have to upgrade”.

    Staff still leave and are replaced by less qualified, less experienced people.

    The franchise is devalued by inexperienced middle management desperately trying to carve out a niche without any real understanding of the Investment management business.

    New products are still vapourware – the much vaunted LatentZero EMS – where’s that at????

    I hope that someone from Fidessa – Chris A, Simon McD, Paul N or similar reads this and starts to ask around among the bigger sell sides – find out how much lipstick the LZ pig has been coated in and then start to put together a plan to make Minerva actually work.

    Comment by professional cynic — December 17, 2007 @ 4:16 pm


    The Mostly blog as a whole is both informed and informative.

    Some of PC’s comments on this particular thread are, in my opinion, soundbites which don’t stand up well to the slightest scrutiny.

    Having said that you have to take into account that
    (a) i’m an FLZ employee and
    (b)this thread is now two years old and blog posts tend to age badly

    Please feel free to drop me a line if you would like to discuss further

    Comment by jim whitehead — April 18, 2009 @ 11:31 am

  6. Hey Jim, Good to see you here!

    Which parts of that post do you think are soundbites?

    Quite a lot of it rings true to me!

    Minerva does not handle Fixed Income FIX workflow – the only way to do this is to hook into a platform EMS such as Tradeweb or MarketAxess etc.

    The answer is still often “it’s the next version”.

    Experienced staff do leave and are replaced by less experienced staff.

    What does HTGASPF mean?

    One thing I’d say to you Jim. Eat your own dog food. If you actually try and use Minerva day-to-day, rather than just implementing it, you will see a lot of issues. If FLZ started to offer an ASP solution and did dogfooding then I am pretty sure a lot of the issues that I see would be cleared up.

    I should point out that I am a consultant to a firm that is a client of Jim’s firm and I know Jim pretty well. He and I have had numerous debates and discussions on this subject….

    Comment by John Greenan — April 20, 2009 @ 11:50 am

  7. Aha….Mr Greenan, I might have known!

    Firstly let me say that it was good to see you today for coffee, constructive as always.

    HTGASPF’s entry seems to have fallen foul of the admins as it appears to have been removed 😉
    I’ll endevour not to make the same mistake.

    More than happy to debate any of PC’s points in a coffee shop of your choosing at your convenience.

    With regard to (direct?)Fixed Income FIX workflow, it would be fair to say that, at the time of writing, we haven’t seen the demand for this from the sellside or buyside, however we’re open-minded on the subject and would be happy to discuss further. Whether the Fixed Income EMS’s should be opening up to provide an API for this has been debated on this very site I believe,

    See you soon

    Comment by jim whitehead — April 21, 2009 @ 2:27 pm

  8. re the HTGASPF – as i wouldnt intentionally remove anything on-topic i just checked if i stuffed up. the only comment recently marked as spam in this post (though not from htgaspf or anything similar) is re how to get a six pack. im sure its fair to say that weve probably all got sufficiently developed six packs so that particular comment can stay spammed …. but the mystery of htgaspf continues …. 🙂

    Comment by holky — April 21, 2009 @ 7:48 pm

  9. hhhm, all those trips to the Rajastan have left Holky with a highly developed six pack….

    Should invite Jim next time! When is next time anyhow?

    Comment by John Greenan — April 23, 2009 @ 10:58 am

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