2020 Outlook: Brian Mehta, Trading Technologies
Brian Mehta is CMO at Trading Technologies.
What were the key theme(s) for your business in 2019?
Trading Technologies dedicated significant resources towards the migration of clients to the TT platform from X_TRADER, our former flagship platform. Currently, we have migrated about 60 percent of our client base, as measured by trading volume. We are working with all of our clients, but most significantly with the large banks, to ensure the remaining process is smooth, while simultaneously building out new functionalities required by advanced users.
While supporting our clients through the migration, we also expanded our global footprint via new exchange connectivity and partnerships. We added the Thailand Futures Exchange, Mexican Derivatives Exchange, Johannesburg Stock Exchange, Moscow Exchange, and Korea Exchange, as well as cryptocurrency exchanges CoinFLEX, Bakkt, and BitMEX. We contracted with CN First International Futures to provide users outside China with access to the Chinese markets, with SBI Thai Online to distribute from Thailand, with Samsung Futures for connectivity to KRX, and with Goldman Sachs for global distribution. This expansion has been entirely customer-driven.
What are your expectations for 2020?
TT clients will continue to seek out cost efficiencies in an environment typified by continued vendor consolidation in the derivatives markets. They will look for technology partners with deep technology stacks that can provide a holistic offering. Our clients who desire that sort of all-in-one offering frequently prove to be stickier.
Other than cost, what is the value-add of cloud adoption in financial services?
At TT, we see the potential for data delivery, storage, and elasticity in a cloud environment. We have been deploying trading software via the cloud since 2015, but it is now that we are seeing far-flung regions get the same access to cloud computing. Now, a network from Google or Amazon can be leveraged to ship data around the world faster than previously available options. We believe we will start to see market participants in such regions migrate their complete trading networks, not just a portion thereof, to the cloud.
Firms are accelerating the buildout of digital transformation strategies.
Expect to see several new entrants in the equity exchange landscape.
CEO sees big potential for financial innovation in digitized assets.
Capital markets will continue to integrate and globalize.
SFTR implementation and the demise of LIBOR will be key themes this year.