Publications
This page contains details and summaries of a selection of research papers, articles and presentations made at various conferences around the world. If you wish to use or quote from any of this research, please seek permission by a request at info@tradingtechnology.com or by contacting the marketing manager under contacts.
The real solution to STP
March 2004, Summerson Goodacre www.sumgood.com
Trading Technology, a capital markets consultancy, proposes a solution to STP, which does not involve technology. The solution is simply to create holding accounts for the buy side that are used to settle transactions with the sell side, and then force the buy side to perform their own allocations internally.
This simple change to the markets would reap benefits to the entire securities industry running into billions of pounds and also remove the barriers to T+1 or even T+0.
Download paper here. (208Kb PDF format)
Service-orientated architecture for disparate derivative trading technology
February 2004, FOW Frankfurt www.fow.com
Trading Technology and BJSS (www.bjss.co.uk) have developed a combination of methodology and technology for establishing a framework within a brokerage house to accommodate small point derivatives systems, encouraging the agile business while centralising core functions. This is called “Service Orientated Architecture” and was presented at the FOW trade show in Frankfurt, 2004.
With the expansion in credit, fixed income, energy and OTC derivatives, how are firms coping with multiple trading and settlement environments?
- What are the business requirements of these systems?
- What solutions are available on the market?
- What architectures are being adopted as best practice?
- How is risk managed with disparate systems?
- How do these solutions fit in with an outsourcing arrangement?
- What regulations affect system architecture and choice?
Download the PowerPoint presentation here (3.3Mb PowerPoint)
Download the prersentation handout here (1.7Mb PDF format)
Download the white paper here (73Kb PDF format)
Exchange Technology survey
Trading Technology has carried out a survey of exchanges, clearing houses and depositories and their technology.
This report is the first of its kind, cataloguing the systems used by all of the exchanges, clearing houses and depositories, commentary on best practice andreviews of the solutions available. The full report “A Strategic Study of Stock Exchange Technology” is available through FOW.
Download press release here (23Kb)
Exchanges are undergoing great change. The world economy has reverted to a global capital market largely as it was in 1913 and capitalism reigns supreme. Exchanges, therefore, have become prominent, but with the added ingredient of technology.
The need for exchanges, and exchange systems, has meant that there has been a “golden age” in the last 15 years. Exchanges in mature markets have gone from floor-based to electronic. Exchanges in emerging markets have been created in order to raise capital to fund infrastructure projects, in place of loans from world banks. In either example the technologists working in exchanges have been busy in a unique global market that is high profile and yet is little understood.
The report is now on sale directly from Trading Technology. To reserve a copy of the report, please contact us
Eurozone payment and securities settlement systems interdependence:
February 2004, Regen, Luxembourg
This paper is written by strategic partners of Trading Technology, Regen.
The purpose of this paper is to examine the interdependence of Eurozone payment systems (PSs) and securities settlement systems (SSSs) the latter hereafter generally referred to as Payments Embedded SSSs.
The findings of this paper are summarised by two premises.
1) By redefining SSSs as Payments Embedded SSSs allows for ‘legal certainty’ at the European and national level, using existing EU treaties and protocols and oversight mechanisms as used by the ECB, ESCB and NCBs, and;
2) Combining Eurozone with non-Eurozone activities, as is the case with current Payments Embedded SSS/ICSD consolidation initiatives, gives rise to risk and creates the potential for Eurozone contagion.
Download paper here. (201Kbt)
T+1, a bad idea
November 2001, privately commissioned research
Presented at Globalisation 3, Amsterdam.
This release and subsequent articles highlighted the difficulties for the US markets to reduce their settlement cycle from T+3 to T+1. The article described the difficulties in scenarios involving settling cross border trades, especially with an FX component, with clients in deferring timezones. The article urged the Securities Industry Association (SIA) to concentrate on STP initiatives instead. There were subsequent articles printed in Financial News, Finextra, Trading Technology week and summarised in a number of international papers.
Six months later in June 2002, the SIA announced that it was going to put T+1 on hold while it investigated different scenarios, and was to concentrate efforts on STP instead. This uncanny similarity between Trading Technology’s findings and recommendations proved the power and influence of our research and demonstrated our thought leadership.
Unfortunately, the SIA have not sought Trading Technology’s help in achieving STP in capital markets, so we have explained how they should do this in the “Real solution to STP”.
Download press release here (27Kb)
Download presentation here (256Kb)
Market linkages vs. market mergers
October 2003, Computershare users conference, Dubai
Trading Technology has done a great deal of work in the subject of market linkage, and has become a leading thinker in the complex issues surrounding the structure of exchange alliances, mergers and the subsequent mechanics of trading, settlement and related technology.
Trading Technology does not believe that the current European Consolidation amongst Exchanges will work effectively moreover is simply taking too long with few benefits to either the market participants or the investor.
Trading Technology has been influential in the progress of the European exchanges as they consolidate. In particular, the Italian stock exchanges have followed our consultants’ strategic advice to create trading, clearing and settlement links with other exchanges rather than participating in a merger.
Trading Technology also spelled the end of the iX merger (the proposed joining of the London Stock Exchange and Deutsche Börse Group) by providing analysis into the structural, regulatory and tax issues. This highlighted the lack of clarity surrounding the merger and the complex issues that were likely to arise. Unfortunately the analysis was not commissioned by the exchanges themselves but by a group of their brokers, and resulted in a great deal of embarrassment for the LSE.
This paper was commissioned for the Gulf markets, which have specific cross-border trading requirements within their region. The same advice has been given to a number of different regions around the world.
Download white paper here (111Kb)
Download presentation here (807Kb)
State of the recruitment industry in IT/Financial services
IT-Director, February 2003 www.it-director.com
As the New Year hangover subsides, a more serious back-to-work attitude is creeping over Industry. As many people are now working in depressed down-sized, budget-restrained organisations, or are becoming familiar with School runs and daytime television, Paul Pickup looks at the state of IT recruitment and addresses the question of whether now is the time to search for a new job, stay put or rent out the house and go on that much talked about round-the world trip.
If you are getting exasperated by the lack of success in getting a job, here is an explanation from inside the industry as to how the process works, how to play the agents and some more off-the-wall interview tips that will hopefully get you from the street to the elite.
Click here for the article (Note this will take you to the IT-director website)
Global Outsourcing Strategies to India – the path to business enlightenment?
IT-director, June 2002 www.it-director.com
One of the latest business fashions has been to outsource troublesome IT to Indian companies full of Far Eastern promise. This little sung activity has now become a $6b business with potentially huge consequences for the IT industry. Paul Pickup has been looking into some real experiences and examines whether it is business nirvana to enter into a GOS, or whether it could result in a Bollywood farce. Alarmingly, is this unfair competition going to spell the end of the IT contractor and many good IT services in the UK?
Click here for the article (Note this will take you to the IT-director website)
Casual dress brings casual work attitude?
IT-director, September 2002 www.it-director.com
As the fun days of the Internet boom are now over, so are many of the excesses that went with it. But there are legacies of the dot com boom that are still with us, casual dress being one. But can we have the casual dress without the casual work attitude? Some slack work practises have become normal behaviour; meetings starting late, people bringing their personal problems to work and staff telling you to “chill out” as they return from 3-hour lunch breaks. Paul Pickup, no stranger to Acupuncture trainers, dons the tartan slippers and rants about this particularly annoying phenomena.
Click here for the article (Note this will take you to the IT-director website)
Business continuity and stock exchanges
September 2003 6th Nextforum, Paris, February 2004, Globalisation 5, Prague
Global Dislocations, Systemic Risk, and Market Disasters – Should the Focus be on Prevention or Recovery?
We live in turbulent times where a single act of fraud or terrorism can have a rapid and devastating impact, rippling through world markets, enabled by information and communications technology and often magnified by poor planning and ineffective leadership.
What lessons have been learned from previous disasters?
- What types of institutions can be regarded as critical?
- Governmental or regulatory intervention versus market practitioner groups and associations?
- Should the focus be on prevention or cure?
- International, regional or national approach?
Download a copy of the presentation here.(1.9Mb)
Impact on financial services in EU Accession countries
January 2004, European Bank for Reconstruction and Development
With the joining of 11 new EU member states, what will be the impact on financial services within those countries and what likely help will they need from the international funding agencies?
Trading Technology prepared a presentation for the ERBD following research into this area,
Download a copy of the presentation here. (942Kb)
A brief history of time – Stock Exchanges role in the world economy
October 2003, Summerson Goodacre, also part of the Exchanges Survey
With the collapse of communism and the outbreak of world peace, Capital Markets once again reign supreme. The world has reverted to a global economy not seen since 1918. Stock Exchanges have once again risen to prominence with one major difference. The bourses are no longer in the quaint old buildings at the historical centre of our towns; they are now mostly technology and are more likely to be found in an anonymous out-of-town business park. This short presentation and paper recaps these historical events, and also cautions about the fragility of Capital Markets, can the lessons of the past be applied to the future?
Download a copy of the presentation here.(1.6Mb)
Download a short paper on the subject here.(91Kb)