By Terry Flanagan

2015 Outlook: Steve Woodyatt, Object Trading

Steve Woodyatt is CEO of Object Trading, a provider of direct market access (DMA)

What were the major themes of your business in 2014?

Steve Woodyatt, Object Trading

Steve Woodyatt,
Object Trading

Improved transparency between the buy-side and sell-side, and requirements to improve oversight of operational and systemic risks are key drivers of many technology innovations and trends we saw in 2014. Regulatory development and exchange competition have fostered liquidity fragmentation with the continued introduction of new products and trading venues. Market participants have been seeking the most efficient ways to manage their scarce capital under the pressures of increased compliance costs, margin demands, and declined overall trading volumes.

What are your expectations for 2015?

It will be more expensive for firms to stay competitive in 2015. Both buy and sell side firms need to reevaluate their technology projects and examine how much spending is dedicated to business maintenance and if they are investing in areas that will help deliver business growth. Capital efficiency will continue to be the main focus, with the new collateral requirements around OTC derivatives and swaps being just one driver. But we have also witnessed the continued futurization of swaps in 2104, as exchanges introduced new cross-margined products to help participants optimize the consumption of collateral. This trend will inevitably continue in 2015, as will the further rise of the non-bank FCMs, specializing in access to regional markets, and providing bespoke solutions tailored to buy-side firms seeking alpha in emerging markets and asset classes.

Related articles

  1. J.P. Morgan is hiring senior bankers and traders as other firms cut

    President and chief executive officer of State Street Global Advisors will retire in 2022.

  2. The majority of US ETF issuers are either developing or planning to develop transparent active ETFs.

  3. BlackRock CEO says pandemic has turbocharged evolution in the operating environment for every company.

  4. Daily Email Feature

    BlackRock ESG Assets Pass $500bn

    Total assets under management grew to more than $10 trillion in 2021.

  5. Warsaw Stock Exchange Aims to Continue IPOs

    The global alternative asset management firm listed on Nasdaq.