Summer C-Level Series: Robert Newhouse, Victor Technologies
What have been the main themes of your business so far this year?
Victor Technologies continues to develop and market real-time margin solutions to the trading industry. This year, we’ve seen a higher level of interest in margin management, that we believe is driven by cost-saving economics and a desire to manage capital usage on the part of broker dealers offering portfolio margin. I believe that the street continues to be in a transitionary phase post-2008, with a number of decision-makers effectively waiting to see what kind of regulatory regime will be implemented, and what effect it will have on trading and associated workflows in the future.
What has surprised you in 2014?
I have been most surprised by volatility levels in the marketplace, most easily seen within VIX valuation. To see volatility at such historically low levels has surprised me, as I would have predicted the opposite based on current global affairs, coupled with the current regulatory uncertainty surrounding contemporaneous trading practices. To see volatility at these levels either means a gross incorrect perspective that will eventually come back into line by increasing to higher level, or a belief in the strong fundamentals of the domestic economy.
What are your expectations for the duration of 2014?
I expect a general “wait and see attitude” with regards to capital spending within our sector – as a product vendor, a situation I hope can be resolved through eventual clarification of pending regulatory initiatives. I also believe we’ll see an increase in market volatility, which may hopefully overcome the reduced trading volumes experienced in equity-based asset classes.