A new industry briefing from A-Team Group and CFN Services
In 2010, financial markets participants will continue to expand their trading activities as liquidity increasingly becomes fragmented, seeking alpha in new markets, best execution in dark pools, arbitrage opportunities across the order book and by implementing high frequency and complex, multi-leg, cross asset class strategies.
The successful operations – whether they be the proprietary desks of traditional broker/dealers, specialist high frequency and algorithmic traders, or quantitative hedge funds – will leverage a trading infrastructure that combines high performance analytical, algorithmic and order routing platforms with the lowest latency access to multiple, geographically dispersed execution venues.
It seems that risk management is never far from the minds of the boards of financial institutions at the moment, given the increase in regulatory and client scrutiny of this space in the post-financial crisis environment. In order to meet the slew of regulations on the horizon, firms are being compelled to invest in their risk management systems to keep on top of their exposures, be they credit, market or liquidity related.
A-Team Group, a publishing and research company specialising in financial information technology, was commissioned by enterprise data management specialist GoldenSource to conduct research into the challenges of managing pricing and valuations data.
Today speed is crucial to any trading venue that wants to stay competitive. At the same time, with high-frequency trading gaining an increasing share of overall volumes, the ability to manage rising transaction volumes is also a necessity.
The A-Team Group Liquidity Risk Management Directory is a new and first of its kind publication, focusing on the providers of solutions in the complex and demanding area of liquidity risk management. As financial institutions face extensive new requirements in the management of liquidity risk, the directory is intended to provide indispensable assistance in the assessment and selection of solution providers.
Market infrastructure is evolving at a pace that even the most technology-savvy financial institutions find challenging. New execution venues are popping up everywhere fragmenting liquidity and creating cross-dependencies between primary and derivative marketplaces. The move to fast markets and trading automation is cutting response times and increasing data volumes. Markets have shown a 70% increase in volume over the last year alone.
