Mostly… fixed income and cross product eTrading

May 15, 2007

Tradeweb / RTFI

Filed under: 2015, etrading, Nuts and Bolts — holky @ 12:27 pm

The prospect of putting Tradeweb and Reuters RTFI in the mix gives an enormous opportunity to do something different

I’ve previously said that based on the level of existing integration between TW and Thomson I don’t think an all-new merged offering with RTFI will be a quick development – unless of course prioritised high enough by all involved – but regardless of the timeframe it will be a massive missed opportunity if we can’t eventually regard whatever does emerge as “the one” that fundamentally changes the etrading landscape.

But where would you start?   “Just” plumbing tw and rtfi and thomson one together; to become workstation neutral in terms of what the customers use (as long as its not Bloomberg)?     Is there really anything enormously clever in any of these existing guis in terms of client order entry that makes this much more than just deciding to use (say) the TW order routing/trade processing infrastructure then route whatever comes from any of the guis into that?    Is that the reasonably quick and painless first cut that lets you reinforce the hearts and minds commitment of your users (all roads leading to the same pool of liquidity) while you build the new offering?

While in that eventual all-new offering you’d have to be particularly brave or stupid to not ensure backwards compatibility with the existing RFQ business (unless you really have time and inclination to wean everything onto the new way of doing business), this is where you get to break the mould and challenge the status quo in terms of what can and can’t be done.

Liquidity Hub is bringing RFS (Request for Stream) into the fixed income world. Why not expand that concept to allow the buyside user to request a stream for all instruments that match particular attributes rather than for a specific instrument (as here)?  

Why not open the pipes so suitably-permissioned buyside can send through executable bid lists to their chosen dealers? 

And why not sort out a client request for access and onboarding process that doesn’t involve someone reading and email or a spreadsheet or retyping the request?  

While you’re at it, integrate your etrading functionality into the Reuters Instant Messaging so anyone who’d like to use IM as their gui (such as the South Koreans apparently) can get involved. 

And above all, ensure everything really has cross asset etrading functionality truly built in (my understanding is that Reuters talk the talk already on this in terms of their “shared architecture” across etrading platforms, but the reality of actually putting this into practice may still very much be a ‘todo’).

Like I said… if this isn’t opportunity that’s come a-knocking, what is?

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6 Comments »

  1. Looking post-trade, what does the future hold for tradeXpress allocations and accountnet for centrally available SSIs?

    Comment by holky — May 16, 2007 @ 11:11 am

  2. SO IN YOUR OPINION, REUTERS/TW MERGER HOLDS THE KEYS TO THE HOLY GRAIL OF ELECTRONIC TRADING?
    SEEMS A RFQ MODEL, COULD EASILY BE ADAPTED TO AN RFS MODEL
    BUT IS TW TRYING TO BUY REUTERS BECAUSE PROJECT FUSION FAILED….. AND THE HUB IS LOOKING FOR BB AND REUTERS AS
    DISTRIBUTION?
    THE TW SCREENS . I THINK ARE SUPERIOR, USER FRIENDLY, BUT RELIED ON A 3RD PARTY TO PROVIDE LIQUIDITY….
    THIS WAS ALWAYS A RISK TO THEIR BUSINESS

    Comment by OLDTIMER — May 16, 2007 @ 4:36 pm

  3. Not really the Holy Grail, but by taking RTFI which hasnt reached its potential but already had appetite to make big changes, and ‘insuring’ the change by injecting the buyside and sellside liquidity from “the establishment” venue into the result, the resulting offering (however branded) really can afford to take some BIG risks in terms of providing new ways to work.

    Playing it safe by just delivering a joined up version of whats out there already would be a huge dissappointment imho.

    Comment by holky — May 16, 2007 @ 7:45 pm

  4. Oldtimer, Thomson buying Reuters has little to do with TW, Project Fusion & RTFI, IMO. Of course it is in the mix but only a component and beyond the Reuters brand with news & data.

    Comment by waratah — May 20, 2007 @ 8:34 am

  5. Why are US Treasury prices still quoted in fractions?

    Comment by jeremiah — May 27, 2007 @ 2:11 pm

  6. The same reason they price petrol (gas) in gallons and road distance in miles…..

    Comment by waratah — May 31, 2007 @ 1:14 pm


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