“It is not the technology that cannot handle capacity, it is the users.”
Viable Mkts CEO Chris White, launched a conference, Rates Evolved The Innovators’ Conference, to engage with market participants in a more meaningful way about relevant macroeconomic, market, and technology developments currently impacting fixed income markets.
At the conference held last Thursday, fintech experts at a panel entitled, The Evolved, explored how new market systems will be built on new technology such as blockchain and AI/ML. The panel participants discussed solutions that will become the future architecture for key global interest rate products and why.
Horacio Barakat, Vice President of Corporate Strategy, Broadridge Financial Solutions, described how the tremendous speed of change with technology is causing “value migration within different parts of the financial sector. The value is migrating from traders to market disrupters who are changing the structure of markets.” The rapid change of technology is changing how market participants view information and data. Previously, value resided with the financial intermediaries who had the information. According to Barakat, “This value is now transitioning from intermediaries to companies that can gather massive amounts of data.”
Many new entrants into the financial sector are using high volume of data. The fast change of technology and market infrastructure, enhances the value of existing networks. Market participants need to be analyzing how technological disruption can cause value to move away from or toward them. “We look at those challenges,” said Barakat. “For example, we are building a new repo platform on distributed ledger to position clients to trade better.
Dan Schleifer, ChartIQ CEO, stated that we are now living in a world “where people use technology to service clients and to give the best experience to customers.” Fintech is also focused on how to make companies be more efficient and save money. “The interesting thing is that there is so much investment going into fintech and the question is what do you want? What can we solve for you? I can help you connect different systems to communicate with each other. How do we help you with our technology to navigate markets?”