Mostly… fixed income and cross product eTrading

January 30, 2008

Turquoise Airlines

Filed under: 2015, etrading — holky @ 4:20 pm

At Finexpo earlier today Eli Lederman, CEO of Turquoise, drew a parallel between 80s deregulation in US airline markets and what is going on in capital markets now. So where airline customers (passengers) now benefit in terms of more readily available flights that are cheaper (relative to the bad old regulated days) .. capital markets customers (buyside, who will of course pass on these benefits to the ultimate investor), should expect the new competition to bring more readily available (/accessible) liquidity, with tighter spreads, and the resulting upsurge in volumes transacted because of this reinforcing (/deepening) that liquidity.

One additional airline point jarred me.  The point about multiple airlines sharing terminals being a benefit to the passenger; who can now easily change airline etc for a connecting flight as part of a single journey. Which of course they can. So multi-airline venues rule! … Though if so, why would Virgin get any value from now claiming their entirely-separate-from-other-airlines security facilities are a differentiating and major plus point?  and who cares if silverjet have an entirely separate terminal?   Perhaps ~ 20 years on some of the multi-airline-per-venue benefits have lost their sparkle?

Persisting with the parallel but looking at FI otc markets, if we step past the current rush for multi-dealer consortia and venues, is the shape of the more distant future that singledealer venues will actually end up ruling?  Then it’s the buyside desktop that keeps the single dealer “terminals” (in airline speak) in close proximity (for easy parking and some benefits of connecting flights during an overall transaction). So that’s still an api connection per dealer (or perhaps per-aggregator) into the buyside desktop then that we should all be seeking?

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