Mostly… fixed income and cross product eTrading

November 8, 2007

Charles River’s FIX Network

Filed under: etrading, FIX, OMS / EMS — holky @ 4:19 pm

Finextra article shows CRD are talking up their FIX network … no real or major news, but interesting figure is the claim of more than 90% of Charles River clients using Charles River Network for electronic trading.   Also talking up the CRD cross product / multiple asset class point to point architecture;  including algorithmic trading, FIX allocations, fixed income, futures, options and FX

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6 Comments »

  1. Something I’m not particularly clear on, if 90% of CRD clients take the CRD network whereas 75% take the managed service,what actually is the CRD network without the managed service part, the article intimates that its actually BT Radianz.

    Comment by oxymoron — November 10, 2007 @ 2:54 pm

  2. You mis-read it.
    “More than 90% of new Charles River clients use the Charles River Network for electronic trading.”

    Yeah, because CRD (and the others) are engaged in a land grab. So it’s a case of “buy CRD and get this as the default unless you really complain”. There are cases where buy-side OMS vendors are forgetting to install the FIX engine until a contract for the vendor lock-in network is signed.

    My advice is always “keep the OMS vendor and the network vendor separate”.

    Comment by John Greenan — November 12, 2007 @ 9:03 am

  3. ooops, sorry was referring to this:
    http://www.finextra.com/fullpr.asp?id=18326

    ‘More than 90% of new Charles River clients use the Charles River Network for electronic trading. Over 75% also select Charles River’s comprehensive remote FIX administration services that provide continuous trade support, network and software management, and broker testing, certification, configuration and monitoring – that ensure high ROI by eliminating the need for internal FIX specialists.’

    Comment by oxymoron — November 12, 2007 @ 2:49 pm

  4. Has anyone heard a rumour that CRD are putting togther a performance measurement and attribution offering (think Statpro, Sylvan etc.)

    Not sure why they’d do that, but an interesting move (if it’s true)…

    Comment by sceptic — November 16, 2007 @ 11:43 am

  5. I hear this network is a major revenue stream for CRD (seriously, a shockingly high %) – but while the sales pitch of having your broker connections and the associated algo functionality fully integrated with your [crd] OMS is strong, how long will the model of charging everyone (buyside, sellside, .. everyone through to milkman) for this type of connectivity be sustainable?

    Isn’t the point of FIX that its meant to be zero transaction cost once you have this generic infrastructure in place? Sure, the reality that each FIX conformance highlights is that there’s a mapping for this or that for each particular “important” client; so are crd just cashing in on the plumbers ruse of sharp intake of breath then “either employ your own fix implementation specialists to establish your connections – or leave it with us and well just hook your CRD OMS up to the certified network …for a small and recurring fee for all’ .. in which case, once everyone’s moved from zero to some connectivity, do we see the consolidation wave in 18 months where all of this raionalises?

    But back to fixed income; why still don’t the existing platforms openly see themselves in the same space as the OMS/EMS vendors (see https://mostly.wordpress.com/2007/03/26/whod-be-an-order-flow-intermediary/ ) .. in order to cash in on running the connectivity and getting order flow from a to b?

    Comment by holky — December 5, 2007 @ 2:15 pm

  6. “how long will the model of charging everyone (buyside, sellside, .. everyone through to milkman) for this type of connectivity be sustainable?”

    Yeah, exactly. Agent/principal, conflict of interest. Where does one start? A dog has only one master – work from there….

    Plumbing analogy is spot on. Once the tipping point is reached and the buy-side wakes up to the fact that certifying a single stock equity counterparty is doable in the time it takes to drink a large latte (if everything works) then the reality check will kick in.

    It’s a bit like Microsoft trying to take the internet private. It’s bonkers to think that it should be the case that a buy-side has to use the services of overpaid and underqualified implementation consultants when onboarding a FIX counterparty is trivial if you know enough about FIX and the business.

    My estimate is that the buy-side reality check will come into effect in late 2008 / early 2009 as they realise that actually, this FIX malarkey is not too tricky after all…

    Opening up closed platforms. Ah, where do you start on that one? Joseph Schumpeter had it right with gales of creative destruction. Few people want to be the destroyer, but destruction is needed to allow for renewal and rebuilding…

    Comment by John Greenan — December 6, 2007 @ 11:38 am


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