2 Minutes with Jose Cadalzo

Jose Cadalzo joined Caplin in February 2011 as General Manager of Caplin’s newly opened New York office. As part of Caplin’s efforts to better service its North American customers, Jose will be looking to expand the New York Caplin team

An e-commerce industry veteran, Jose brings a wealth of skills to Caplin’s US operation including in-depth knowledge of trading in equities, FI and FX as well as more than 20 years experience of building e-trading systems.

Q: Jose, welcome to Caplin. Where have you joined us from?

A: Most recently, I was Program Manager at ICAP. I was responsible for the overall management of the project portfolio and client relationship management for their Fixed Income e-brokerage business. I have experience working on the vendor side as well as for financial institutions always focusing on delivering value to my clients whether they were internal or external.

Q: Can you tell us a little about your technical and business background?

A: My educational background is in Electrical Engineering but I also have a degree in Philosophy. My career has been mostly in delivering IT solutions to the financial industry and over the years I have worked closely with IT and business leaders. Over the last few years, I have mainly been focusing on e-trading solutions in the OTC market for FX and Fixed Income. My background also includes Market Data distribution and product management. I pride myself at being able to help bridge the gap that sometimes exists between IT and the business and to help deliver solutions that solve real business problems.

Q: What do you feel are the biggest challenges in implementing single-dealer platforms today?

A: I think the biggest challenges are not technical but rather on how to best use this powerful technology. SDPs allow firms to connect to their clients in a personal and direct way. Some firms struggle with how to effectively do this without making it more difficult for their clients or their internal sales teams to interact with each other. As more and more firms enter this space and, those who were early adopter roll out second or third generations, the challenge will be in differentiating the offering and providing an experience to your clients that will encourage them to do more business with you. SDP technology, such as what we offer at Caplin, allow financial firms to quickly and cost effectively deliver content and e-trading solutions to their clients in ways that were not possible just a few short years ago.

Q: Caplin has recently won a number of new clients in the US and Canada recently and The April 27th Waters North American Trading Architecture Summit in New York featured two presentations focused on single-dealer platforms. What has caused North America to focus on single-dealer platforms?

A: The OTC market is increasingly complex and competitive. Financial firms wishing to differentiate their offerings and provide a direct channel to their clients are turning to SDPs as a way to connect with their clients and increase their revenue potential. Studies have shown how the estimated spend on SDPs has tripled in the last 5 years. The US market, in particular, has been impacted by regulatory changes calling for greater transparency and automation. At the same time, a new generation of technology savvy traders are demanding greater online tools and services. These trends all add up to banks investing in their future by enhancing their on-line presence.

Q: Everyone’s had a job they will always remember as their worst. What was yours?

A: Discounting my high school summer job of being the only dishwasher in 250-seat restaurant, the job I would say was my most challenging was the year I spent working for a start-up developing an e-commerce portal for the jewellery industry during the final days of the dot-com era. I had a wonderful time challenging myself learning this very unique industry and brokering deals between suppliers and independent jewellery store owners but, I can honestly say that, I am glad to be back in the finance industry. We were trying to change a business model that had been in existence for over a hundred years by applying technology before the industry was ready for it or willing to invest in. I was lots of fun while it lasted but I am not eager to repeat the experience.

Q: You’ve had a hand in building various e-trading systems over the past 20 years. How has the thinking and approach to building these systems changed over that time?

A: I think the biggest change has been in the cultural perceptions of what these systems mean to the business. The successful companies that employ e-trading technology focus on delivering value to their customers but value can come in many forms. For example, it could mean greater trading efficiencies leading to lower operational costs or it could mean delivering better products and services to your clients. Successful e-trading systems recognize the power of people and technology and the resulting enhanced customer experience when these two are working in unison. It empowers the sales team and traders by allowing them to focus on value added services to their clients rather than the mechanics of trading. The adoption rate of electronic trading is on the rise as well as the acceptance of the internet as a viable trading platform. The next evolution is the growing acceptance of mobile devices and how that technology can be leveraged to add yet another channel to communicate to your clients.

Q: Opinion on the proposed Dodd-Frank varies widely. What are your thoughts on the potential positive and negative influences it could have?

A: I don’t want to get “too political” with my response but I believe there is wide acceptance that it is good practice to review and enhance the regulatory framework that governs our markets. The events that led to the deepest and most prolonged recession since the great depression must be analysed so that we don’t repeat the same mistakes. Free markets need to operate in a balanced and fair way. The Dodd-Frank reforms have the potential to improve the regulatory framework, introduce consumer protection reforms, and provide international standards.

Q: Last gadget you bought?

A: I recently purchased an iPad2 and that is quickly becoming my “go to” gadget. I take it with me everywhere I go staying connected with work, family, and friends and it only weighs me down by one pound!

Q: Mets or Yankees?

A: I haven’t seen the latest polling from our clients on this but I will go out on a limb and say that I am a Mets fan to the core. I have been a loyal fan since 1969 and will bleed blue and orange if you cut me.

You can contact Jose on +1 (212) 835 1574, by emailing na_sales@caplin.com or by completing the "contact" form on this website.