As traders diversify to realise greater opportunities for arbitrage and move into new markets, the demand for cross-asset class trading capabilities has never been greater. Roger Aitken looks at what solutions are out there and how traders are increasingly looking for platforms that can trade equities, derivatives, FX and commodities and how the search for low and ultra low latency is defining the evolution of the market.
Banks, brokers and traders are increasingly
breaking down silos, ending the traditional separation of asset
classes into distinct business activities with incompatible
trading systems. Today the drive to automate virtually every
shade and variety of trading is creating a growing demand for
Clearly, an integrated multi-asset trading platform
that allows market players to trade foreign exchange, cash
equities, futures and options and other instruments is a very
powerful proposition. However, the jury is still out as to
whether the holy grail of true multi-asset class
trading on a single platform is a realistic goal.
Change is happening, however, driven by investor
appetite for reduced transaction costs, access to higher
liquidity, greater arbitrage opportunities and the growth of
electronic trading across asset classes from equities to
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