Credit Suisse's Muthu: Multi-Asset Platforms Good For IT, Not Necessarily Revenue
"From a trading point of view, I just look at what it's costing me to trade," says Michael Levas, founder of Olympian Capital Management. "If I can reduce my cost to trade, that to me is the most important thing. By the same token I don't want to lose the quality of execution. For example, if you're using a smart order router effectively, there are rebates, there are various little gifts that one gets. From my point of view, it's strictly in reducing the cost of trading."
Deborah Mittelman, global head of product management for direct execution at UBS, adds: "We're constantly trying to measure profitability of a client. What does it cost us to trade with this client and what is your ratio of people to revenues that you should see getting better over time if your technology is performing more effectively. And the final measure, of course, is always earnings per share."
At Credit Suisse, Nachi Muthu, the global head of multi-asset electronic trading, listed derivatives and over-the-counter (OTC) clearing IT, has been tracking the degree to which traders have focused on different asset classes on his multi-asset class platform. The cross-pollination was not particularly high; in fact it was lower than he'd guessed. The usefulness of the platform for the IT side is different, though.
"On that side it makes a lot of sense because the same team is providing coverage from a relationship point of view to the clients as well as providing the core platforms," he says. "The costs are pretty easy to measure and say we have enough savings. From a revenue perspective, at least from a cross-pollination point of view, it was surprising to see it was not that much."
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
More on Emerging Technologies
Hub to lay off 20% of staff, sources say
Hub’s CEO says this is simply a case of a startup trying to stay nimble and efficient; others say it points to deeper issues.
Fighting FAIRR: Inside the bill aiming to keep AI and algos honest
The Financial Artificial Intelligence Risk Reduction Act seeks to fix a market abuse loophole by declaring that AI algorithms do not have brains.
Waters Wrap: The rise of AI washing… and regulation washing?
The SEC recently levied fines against two investment advisors over “AI washing”. Anthony takes issue with the announcement.
This Week: Brown Brothers Harriman, BNY Mellon/Nvidia, Cboe, Eurex, and more
A summary of the latest financial technology news.
This Week: SS&C unveils T+1 preparedness scorecard; S&P/DTCC; SmartStream & more
A summary of the latest financial technology news.
The bank quant who wants to stop genAI hallucinating
Former Wells Fargo model risk chief Agus Sudjianto thinks he has found a way to validate large language models.
Prepare now for the inevitable: T+1 isn’t just a US challenge
The DTCC’s Val Wotton believes that firms around the globe should view North America’s move to T+1 as an opportunity—because it’s inevitable.
Man Group’s proprietary data platform is a timesaver for quants
The investment firm’s head of data delves into its alt data strategy and use of AI tools to boost quant efficiency.
Most read
- Women in Technology & Data Awards 2024: All the winners and why they won
- Witad Awards 2024: Above and beyond award (vendor)—Susan Bennett, Tradeweb
- Fighting FAIRR: Inside the bill aiming to keep AI and algos honest