Volatility Drives Demand for Managed Services

Terry Flanagan

Perseus, a managed-services provider of high-speed trading connectivity, has seen demand escalate in response to an uptick in financial-market volatility.

“We’re starting to see talk of central banks around the world putting in rate changes, which is leading to renewed interest in interest rate swaps and futures contracts,” Perseus CEO Jock Percy told Markets Media. “Futures FX is volatile and there seems to be a lot of alpha trading FX. We’re seeing a renewed interest in trading financial products and services, and most of these companies want to outsource this functionality to specialists.”

Early this week, Perseus announced that Goldman Sachs took a $20.5 million equity stake in the company. Funds will be used to fuel expansion.

“We’ve had pretty explosive growth,” said Percy. “This helps us do that in every single, major market in the world and to do it quickly. We can do this in 12 to 18 months, instead of another five years.”

In the past year, Perseus released LiquidPath, a managed service offering trading infrastructure, connectivity, hardware equipment and local consultancy for the buy side, sell side and service vendors, into the U.S. financial market, and EdgePath, a fully-managed service that deploys infrastructure for the technology, media, telecoms and iGaming industries.

“We’re rolling out 28 new LiquidPath and EdgePath locations around the world, and have completed three of them, the latest being Johannesburg,” Percy said. “We’ve got 25 to go and we want to get those completed in 12 to 18 months.”

Perseus began rolling out LiquidPath to the world’s most heavily traded, voluminous, markets. “We started in New York, London, and Chicago and then went to Frankfurt, Sao Paulo, etc,” Percy said. “Now we’re getting to Hong Kong, Tokyo, Singapore, Johannesburg, and then following on from that wave we will be in Taiwan, Kuala Lumpur, and Bogota. Then we will naturally come to a nexus point to decide if we want to go to the next 20 to 30 smaller markets around the world.”

Featured image via iStock

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