Trading Technologies at FIA EXPO 2023: Multi-asset and TCA solution for the buy-side

The FIA Expo serves as more than just a networking hub; it’s a nexus for intellectual exchange, offering participants invaluable insights into the ever-evolving landscape of derivatives trading.

Trading Technologies (TT), a key player in the trading software arena, is currently making headlines with its strategic acquisitions and technological innovations.

FinanceFeeds Editor-in-Chief Nikolai Isayev spoke with TT’s CEO Keith Todd and subsidiary Abel Noser Solutions CEO Peter Weiler for a sideline interview that delved into a wide array of topics.

From the integration of newly acquired Abel Noser Solutions into TT’s multi-asset ecosystem to the rapid advancements in Transaction Cost Analysis (TCA), the discussion offered a keen glimpse into TT’s strategic vision and what the industry can anticipate as we approach 2024.

“The buy-side is where the money is”

The acquisition of Abel Noser Solutions by TT marks a significant step in the firm’s multi-asset investment plan, pushing it closer than ever to the buy-side of the trading world.

“Data and analytics are at the core; TCA is a really powerful set of tools,” said Todd. He emphasized that “the buy-side is where the money is” and that direct contractual relationships with buy-side entities will be increasingly important as TT broadens its multi-asset offering.

Abel Noser Solutions, which has operated independently for 48 years, finds a wealth of benefits in joining TT. Peter Weiler highlighted the ability to tap into TT’s global footprint and ecosystem as pivotal. “The cross-selling opportunities for us and the opportunities for our clients to consume more is going to be substantial,” Weiler noted.

Todd interjected that scale matters in today’s market landscape. “There’s a huge benefit to the customers from being able to take a number of products from a single supplier, in this case, Trading Technologies,” he said.

TT now combines pre-trade, at-trade, post-trade, and execution

Transaction Cost Analysis (TCA) is evolving at a rapid pace, driven by regulatory changes and increasing price discovery. “What’s driving it really is, first and foremost, regulation. If you think about it, that’s sort of the top of the pyramid. And that regulation is bringing more price discovery in the marketplace.”

Weiler pointed out that the electronification of trading has significantly improved the quality of analytics, and that this trend is moving quickly towards pre- and post-trade analysis. The combination of pre-trade, at-trade, post-trade, and the execution piece in one single solution is a powerful move for clients.

On the subject of TCA integration into TT’s platform, Weiler mentioned a phased approach, beginning with a vast library of multi-asset reports made available to TT clients. Todd further explained that ease of integration is critical, allowing customers to easily activate more sophisticated analytics at the click of a button.

“TT is like the cable TV business: it’s about signing up for some execution screens, then wanting to get FX, switching on a new movie channel, then switching on the fixed income, and then the data and analytics TCA. One-stop shopping, ease of integration”, Todd explained.

Nearly two years ago, TT itself was acquired by 7RIDGE. Since then, TT has been on an acquisition spree, including the purchase of RCM-X and AxeTrading. “There will be more acquisitions. There’s also going to be many more partnerships,” Todd revealed, adding that TT will likely have doubled in size by 2024 relative to December 2021.

The interview served as a window into the ever-changing landscape of trading technologies and strategies, showcasing TT’s vision for a future in which multi-asset trading and sophisticated analytics coalesce into a more efficient and effective trading environment.