Latest white paper: Trading On The Move

October 09, 2014

London, New York – October 13th 2014: Caplin Systems, e-distribution specialist and the pioneer of single-dealer platform (SDP) technology, today launches its new white paper, Trading On The Move, which evaluates the growing demand for mobile trading technology in the capital markets, discusses the challenges in delivering a reliable, secure, compliant mobile channel, and gives advice on how to approach building one. The paper draws on the results of a recent Caplin e-Trading survey, and highlights the disparity between buy-side enthusiasm for mobile trading and sell-side reservations.

Key findings

  • Supply and demand: There was clear demand for mobile execution from corporate clients - in fact, lack of service availability was the single biggest reason these clients weren’t trading on mobile devices, despite over 50% of the sell-side feeling lack of client demand was the main factor preventing them offering such a service.
  • Execution and order placement are in high demand for FX trading, though only a small proportion of the sell-side are offering such services today. 
  • Security and compliance concerns were not a major factor for end-users, despite fears from the sell-side. In fact, only 8% of buy-side respondents named security as the primary reason for not using mobile trading, versus 57% of the sell side.

These imbalances represent (short-term) opportunities for more forward thinking banks to stay competitive and leap-frog some of their slower competitors by extending their single-dealer platforms to include a mobile FX channel.

Patrick Myles, CTO, Caplin and lead author of the white paper said, “The appetite for mobile dwarfs any preceding technology. Buy-side and corporate traders are fundamentally no different than the rest of us - they expect to be able to replicate the desktop experience on mobile. The sell side needs to offer mobile trading FX as part of their e-channel or risk losing customers to those that do.”

The white paper also includes the macro trends for mobile devices, advice on overcoming security concerns and the technical advice for building a mobile trading app.

There were 150 respondents to the survey, which was carried out from April to July 2014. Of the sell-side participants, the majority (56%) were regional banks, followed by global banks (30%), the remainder being made up of smaller local firms. The buy-side was split between corporates (74%) and institutions/funds (26%). 72% of companies were based in the UK and Europe, 14% from the US and 14% from Asia.

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