Leveraging a shared infrastructure to trade across asset classes, regions and strategies

Abstract

This paper examines the key trends shaping the global securities trading industry, including increased automation, changing market structure and regulatory initiatives to promote market transparency and stability. In particular, it examines market structure changes taking hold in Asia that are beginning to mirror similar developments in the USA and Europe, where advancements in exchange technologies, the proliferation of alternative trading venues, waves of exchange mergers, increased uptake of high-frequency trading strategies, and the availability of advanced trading solutions from third-party vendors have all contributed to a new market landscape. In addition, the paper highlights the opportunities faced by firms looking to capitalise on this changing market landscape by expanding their trading operations in Asia, and examines the key requirements for developing technology infrastructures to support Asian trading operations, while scrutinising the case for partnering with specialist technology and data providers versus building proprietary systems. Finally, it outlines the key characteristics that service providers must possess to support firms expanding their Asian trading operations in the most profitable way possible.