TT^® Connect Blog

This week, the derivatives industry heads to the sunny climes of Florida for the 50^th edition of the seminal event of the year: FIA Boca. 

Boca is unique and unlike any forum I’ve seen in any industry in terms of bringing together the most important players. The conference hosts the sell side, the buy side, exchanges, associations, regulators, technology providers, media and others from all over the world. 

To my mind, there are two key technology trends that will form the discussions this year: front-to-back integration and the move to multi-asset trading. 

As trading has become increasingly complex and markets have evolved, transaction cost analysis (TCA) has shifted from a compliance function primarily for equities trading to one that actively drives front-office decision-making across all asset classes. Today, multi-asset TCA is an essential tool for both buy-side and sell-side firms in optimizing trade execution, managing risk and meeting regulatory requirements. 

One of the most significant developments in trade surveillance over the past decade has been the growing demand for consolidated, multi-asset capabilities. 

Historically, many surveillance systems were limited to specific asset classes, such as equities or futures. However, as firms across the market have increased the complexity and scope of their trading operations, the need for comprehensive, cross-asset surveillance has grown.

Capital markets are among both the biggest producers and consumers of data across all global industries. In the fast-paced world of financial markets, exchanges are the hubs through which much of the data flows. 

Regulators in both the UK and EU are taking steps to make it easier for asset managers to charge clients for research without their consent (which was required under MiFID II). While the re-bundling creates complexities, it brings huge opportunities for asset managers. Neil Scarth, Principal at Frost Consulting, addressed these changes at our TT Connect: Unlocking Profit with Data & Analytics event last September. We’ve since caught up with Scarth about what the changes mean for asset managers and how they can capitalize on the opportunities.