Aside from the abnormally warm weather, Chicago’s 2015 FIA Conference & Expo was a scene of continuing trends. High frequency trading advantages remain driven by those who capture the most latency-sensitive trading networks and highly innovative tools and algorithms. FIA Expo was a flurry of vendors and trading firms seeking to cement their place at the top of an environment of consolidation and technology advancement. Amidst the crowd of meetings, presentations and exhibits, you could glimpse threads of trends the top firms used this year to succeed. Gathered from conversations at this year’s event, here are our predictions for the year ahead.
Firms Who Keep Their Connectivity Solutions Flexible Stay Ahead
As financial players jockey in line to compete with an expanding pool of larger trading firms, there is no question that reliance on high speed and secure connectivity to market data is still a top challenge. While some larger financial players have developed their own networks for direct connectivity to market data and matching engines, alternative distributed ultra-low latency access methods continue to advance. Meaning those who have invested in private infrastructure are slow to react to network advancements and need to be supported by a leaky purse. Smaller trading firms remain more fluid but continue to seek methods to access a trading infrastructure platform with the horsepower to enable profit taking supported by smaller operating budgets. Alternatives continue to develop in private infrastructure solutions, allowing trading firms to focus on their trading strategies while infrastructure providers implement the most high performance connectivity methods and remain agile to market and technology advancements.
Future Widespread Adoption of Technology Used By Trading Firms
Finding the competitive advantage now seems to stem from outsourcing connectivity management to those who can provide the lowest latency, lowest barrier to entry, and fastest deployments. Outsourcing connectivity means trading firms not only have the advantage at the time of investment, but also as network management, speeds and available technology needs change. As this strategy becomes the new norm, business of all types – within and in addition to the financial landscape, are beginning to adopt methods for ultra-fast, secure and reliable network requirements. After all, trading is not the only sector where speed equates to a market advantage.
A High Speed Future For All Businesses Who Follow Financial Markets
Keep your eyes on private and public sectors who follow the financial markets and adopt the high speed infrastructure approach. Businesses that partner with connectivity providers that can retain more flexible network approaches will begin to speed ahead. We should see a major shift in our international business culture as those within and outside capital markets adopt new speeds of working, data access, and communication across diverse geographies and industries.
Cheers to another successful expo – to all our clients and partners we were able to reconnect with in Chicago – and a future that continues to find new ways to bridge distances.More Resources for Infrastructure Strategy