Outlook 2019: Gerald Starr, Cloud9 Technologies
Gerald Starr is CEO and co-founder of Cloud9 Technologies.
How should 2019 be known?
The new year will be known as “The Year of the Tipping Point in the Trader Voice Market.”
Although high-speed, automated trading solutions are engulfing much of the capital markets landscape, voice trading is still prevalent in many areas of the industry, particularly fixed income. We expect to see a tipping point for technology’s impact on voice trading, as well as data capture in the next 12 months.
Which hot topic should be left in 2018?
That voice trading is obsolete and outdated. With the advent of big data and more robust and comprehensive surveillance options, voice trading is still heavily relied upon by some of the world’s largest financial institutions.
Firms realize that phone turrets – not voice trading – are outdated and remarkably expensive. This type of 30- to 40-year-old technology is gradually making its way out, and new, innovative solutions such as biometry, transcription, data analytics, and keyword spotting are helping to keep voice trading active and relevant.
What changes do you expect regarding analytics in the coming year?
Analytics and data encryption will be vast areas of interest for buy- and sell-side firms in 2019. Data has never been more important and more prevalent across capital markets than it is right now and we have the capabilities to exploit this data and to generate and enhance alpha.
Much of the unique data to which we have access was previously unavailable like transcribing voice-trade recordings instantly with pinpoint accuracy.
The industry, and regulators in particular with the advent of MiFID II in 2018, have taken significant steps towards a more transparent market landscape and with the technology that Cloud9 and the broader industry are working on, we have surveillance, analytics and data transcription capabilities that can be both seamlessly integrated into current systems and meet up-to-date regulatory standards.
Partnership goes beyond aggregating market data and liquidity, to trade execution.
Frontier and emerging markets investors will have electronic access to US bond markets.
The new Open Trading protocol is another step in automating fixed income.
The BARX platform harnesses the bank's data science capabilities for better trade analytics.
TradingScreen notes that for hedge funds, equities 'electronification' is only one piece of the puzzle.