To Connect to Multi-Asset-Class Trading, Banks Must Prioritize Flexible, Integrated Systems

When we look back at 2019, we’ll remember this year as not only a time of unrelenting shifts, but as a technological game-changer for bank trading desks. Will you stay in the lead or fall behind?

The stage is set for the most intense competitive race the industry has ever seen. Unquestionably, the past year has been a tumultuous one for banks.

Externally, geo-political risk, the end of quantitative easing by the European Central Bank, trade wars, low interest rates, and a return to market volatility have all contributed to make for a challenging trading environment. And, this year appears ready to throw more of the same at banks’ front offices by adding new trends and changes to navigate, including LIBOR replacement, a strong upsurge in ESG investing trends, and a trend toward cloud adoption.

Internally, banks are grappling with lower profit margins, which is driving the need to reduce the cost of doing business. This increases pressure to explore new business models, and to increase efficiency across electronic trading, OTC and the management of complex derivatives, XVA valuation and risk management needs, with trading and risk functions moving closer together.

How can bank traders stay in the lead?

We believe the future of the front office is an integrated front office that can flex, scale, and support trading for a comprehensive range of asset classes. FIS’ Front Arena is a future-ready front-office platform that puts market data at the fingertips of users, streamlines data and processes for maximum efficiency, and supports multi-asset class electronic trading and complex investment strategies. Front Arena’s high-powered capabilities will keep you in the lead with innovative technology for trading, risk and portfolio lifecycle management.

Banks can connect to the future today with technology that is underpinned with open APIs, empowered by digitalization and aligned strategically with business growth. Banks are pushing to become more agile, and integrated technology is a key factor in achieving this – monolithic technology systems that are anything but modern or user-friendly will only stand in the way.

Will 2019 be remembered as the year of the integrated front office? In this new article from FIS, see where our front-office technology experts believe bank trading desks should focus to stay in the lead.

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