Vol 2 No 4
THE DALY OPEN
Look Back in Wonder
As we face the mid-year mark for 2005, we should take this opportunity to review some of the most important projects of the past year.
At the top of my list, I put the cross-asset trading overhaul of HSBC (DWT, May 23). We have all heard of how firms are chomping at the bit to plow through the political and technical barriers to true cross-asset trading. Unfortunately, IT executives have to expend major political capital in order to break down walls and toss out technologies that various factions have grown attached to.
Of course, HSBC is not alone. The Frankfurt-based Bayerische Landesbank (Bayern LB) has begun ousting at least 16 of its incumbent systems in its bid to achieve a cross-asset class trading platform via Summit Systems (DWT, Oct. 11, 2004). The HSBC and Bayern LB sagas are likely to prove instructive over the coming months and years.
After cross-asset dreams, many firms are yearning for functional computing grids. As evidence, I point you toward the grid computing projects of Goldman Sachs, Toronto Dominion (TD) Securities, BNP Paribas, JPMorgan, Bank of America, and Merrill Lynch—all of which have been reported on in DWT. These projects prove that grid computing is real and likely to become a permanent part of the landscape.
Closely behind cross-asset and grid initiatives is the rush by firms to secure direct, low-latency access. Toward that end, Merrill Lynch is moving fast beyond point-to-point networking links via its embrace of the extranet services of Radianz (DWT, March 28). The firm is using Radianz to link to two North American exchanges and is investigating the prospects for direct, low-latency access to market data. Merrill’s actions reflect the growing demand among firms for flexible networking alternatives.
If we look to the exchanges, the New York Stock Exchange (NYSE) and the London Stock Exchange (LSE) continue to push forward in highly public ways. Waiting in the wings is the American Stock Exchange (Amex), which is pinning its hopes on the rollout of the state-of-the-art Alternative Trading System (ATS) for hybrid trading. It is also revamping the Amex New Trading Environment (ANTE) platform for options (DWT, May 9). If there was ever a case where technology needs to make a difference, it’s at Amex.
Of course, this is an arbitrary review. Feel free to disagree with me and forward your comments to me at eugene.grygo@incisivemedia.com.
Eugene Grygo, Editor
