Delivering a Modern Technology Stack for the TT Platform of the Future
This is an exciting time to have joined TT as CTO, as we execute another dramatic shift in how trading software is delivered and used by customers. TT was the first mover in the transition from desktop to cloud. Today, we are a platform business expanding across asset classes and functionality as we build the operating system of capital markets.
The core TT platform is built around our multi-asset trading strategy. In our previous blog post, my colleague Reena Raichura talked about the TT platform and our goal to become the operating system of capital markets. Reena looked at what that means for our customers and partners. Today, I take a deeper dive into the technology vision behind that concept and my priorities as the CTO of TT.
The Platform Vision
TT’s vision to redefine the company as a platform was a key part of my decision to come on board as CTO. At the center of our vision is what we call the core TT platform. Reena outlined what this means from a product perspective: a Software-as-a-Service (SaaS) platform delivering “multi-X” solutions, with “X” representing asset classes, functions, workflows and geographies.
Conceptually, a platform is a collection of services and applications that interoperate. From a technology perspective, the platform is designed to provide foundation services such as authentication, authorization, security management, storage, data inputs and outputs, and much more.
The platform provides these essential building blocks consisting of three layers: the UI layer, the server layer and the data layer. Our centralized data warehouse forms the foundation of the data layer. The typical trading system functions, such as O/EMS, workflows and risk management, are at the server layer. At the UI layer, users will be able to build a host of customized functions, like workspaces, workflows and notifications.
Accessing New Data
Data drives any business operating in capital markets today. A key component of our strategy is to give customers access to data sets that haven’t previously been available to them.
A key challenge in the market today comes from fragmented tech stacks that lead to fragmented data. For example, many firms that trade foreign exchange (FX) and futures have separate trading systems for each. So when they execute a futures trade, they are executing the FX hedge in another application.
As a result, they are sitting on profit and loss risk that they need to consolidate. The TT platform now enables them to consolidate both trades on a single screen, providing centralized data and workflows that integrate the FX and futures trades. And we are not doing it only for FX, but also for fixed income and all other asset classes.
The platform we are building is globally distributed, highly available, quickly deployable and fully scalable. The power and value of the platform will increase as we add more data, more users, more asset classes, more services and more functions.
Changing Markets
TT is in a great position today. However, having been in this business for over 20 years, I know that what applies today may not remain applicable in 10 years.
For example, volumes today exceed what many could have imagined even a decade ago. And the amount of data generated by exchanges and trading platforms is constantly increasing. So we are continuously investing to improve scalability and distribution to meet market demands as they evolve.
There is also an ever-growing demand to connect to new venues and cover more asset classes and regions. We connect to more than 100 markets, but we will need to connect with hundreds of liquidity sources to serve the needs of our client base and fully realize our vision of becoming a true multi-asset trading platform.
Resilience in the Cloud
TT was the first capital markets technology firm to adopt the cloud. Since we started building cloud-based technology more than a decade ago, adoption has accelerated across the market.
There is no doubt that the cloud has brought many benefits to us, our customers and the wider market. It has allowed us to build faster, deploy more effectively and get closer to our customers.
But it is not as simple as saying that everything that can be run in the cloud should be run in the cloud. We must remain mindful of the risks associated with its evolution.
With only three large cloud providers today, the risk of an outage is ever-present. Inevitably, any cloud strategy creates dependencies on third parties. All firms need to consider those dependencies and the concentration risks they pose.
That is why we are investing in data centers—to ensure that we don’t have dependencies on any one firm or infrastructure.
Cyber Security
With cyber risk being one of the key threats CTOs face today, the number one requirement of any resilient software must be robust cyber security. While we build highly secure software at TT, it is a constant challenge to stay ahead in a world of growing threats.
The total workload to build a secure system is around two or three times that of building a system in an environment where security isn’t a factor. That is a challenge that we take on at TT—we constantly think about security so that our clients don’t have to. Sometimes this means the lead time to launch is longer, but it is an area in which we will not compromise.
A Cautious Approach to AI
Another key focus in today’s technology landscape is, of course, artificial intelligence (AI). We are not driven by hype and are taking a cautious but proactive approach.
TT’s offering is about accuracy, precision and diligence. It is well known that AI can hallucinate. You can tolerate inaccuracy to some extent when using a chatbot, but if you are executing trades with millions of dollars at stake, you need absolute precision and accuracy.
While we evaluate how AI can improve operational efficiency for both us and our clients, we are diligent in our approach and ever conscious of the risks AI might bring.
We are serious about AI and are evaluating the technology in some of our products. For example, we are working on a chatbot for our transaction cost analysis (TCA) product suite, and we recently invested in fintech firm SIGMA AI.
With this said, we are focused on introducing AI at the right time and for the right product. We will not introduce AI to any of our products until we are absolutely certain of the value it will bring to our customers.
Continuous Investment
Our approach to AI mirrors our broader strategy—continuous investment in technology to drive change that delivers our long-term goals.
Our vision is to give our customers access to best-of-breed applications that power their trading workflows, whatever their asset class coverage, role or function. As a technologist, I am always looking at how we can be even more resilient, more distributed and more scalable while constantly delivering service excellence to our clients.
Those factors are key to our continued growth and the value we deliver. As we develop the operating system of capital markets, it is essential that we do so in collaboration with both our customers and partners. That is fundamental, not just to our customers’ success, but to ours as well.
Reach out to learn more about our technology development strategy.