Mostly… fixed income and cross product eTrading

June 4, 2007

Multi-Asset Trading

Filed under: etrading — holky @ 11:21 am

A good article in WSJ “Is Multi-Asset Trading Dead on Arrival?” says It’s easy to blow off multi-asset trading as DOA. Trading across products violates almost everything I have learned, namely: Wall Street makes money through focus; systems developed for multiple purposes serve none; the industry’s technologies follow P&L codes, which are vertically (by product) not horizontally (by customer) aligned; and if you make it too complex, nothing gets deployed.   

The article does put forward the case ‘for’, and its conclusion is sound; while full integration of all of the silod front and back office systems is in the dim and distant future at best, that will not prevent customer side increasingly needing, and so increasingly getting, the ability to electronically trade multi-asset transactions.

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1 Comment »

  1. Customers want a 1 stop shop! And who can blame them, using this system for that, that system for this. They wasnt one screen, one product and one fat pipe connected to a bank through which they can do everything.

    Convenience, while at the bank itself products will separated vertically, the info on the screens there will be streamed into one place.

    With everything electronified, there is nothing-accept an exceptional quanty IT genius, making this happen. Then you need about 100 Ultra quants to develop an algo fot exploit it

    Comment by sodappa — June 7, 2007 @ 5:02 pm


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