Financial institutions are increasingly finding themselves having to compromise. Rising costs mean that large investment banks often resort to utilising a shared corporate infrastructure – which can make all the difference if you are trying to compete within a low latency electronic trading environment.
Because this shared corporate environment is also trying to satisfy the needs of different functions of an investment bank - corporate treasury or even retail banking – the conflicting requirements negatively affect performance. Priority is not always given to sales and trading, which is bad news if you want low latency to be characteristic of your trading strategy.
Furthermore, from an infrastructure perspective, it is not uncommon for an investment bank to decide that they are going to use a certain brand of network compliances and devices or server specific hardware across the board. Such a deployment certainly brings with it economies of scale and is easier to manage from a contractual perspective. But once again it means that the bank is not putting trading strategy first, denying their traders the ability to operate on best of breed technology that is one hundred per cent fit for purpose. Instead they employ ‘good enough’ technology which is utilitarian in its capacity to be used across the whole front office environment, but trading performance suffers as a result.
Fixnetix offers an alternative way of doing things, one that allows investment banks to achieve a much better performance by giving sales and trading access to a purpose built environment, whilst keeping costs under control. If investment institutions hop over their internal corporate infrastructure into an ecosystem built and managed by Fixnetix, they will be able to work with us to find a bespoke solution that sits within the budget while utilising the best technology – technology whose value might not necessarily be recognised by the other areas of a bank.
Fixnetix also offers an effective way for Investment Banks and Hedge Funds to deal with the logistics of a fragmented marketplace. Some venues do not survive and often banks will decide that connectivity to a particular venue is no longer necessary as their trading strategy has shifted and taken them away from the need to trade on that market. But if a bank has already expended their capital by connecting to the venues – deployed the hardware, utilised data centre space, engaged the telecom lines – then a lot of money will go to waste on infrastructure that no longer has a purpose. Fixnetix allows customers to repurpose expenditure and move the operational spend to another venue of their choice where they may have better success, either because the venue has ceased to be operational or their trading strategy has changed.
We position ourselves as an extension of a client’s IT operations, rather than having an ‘us and them’ dynamic which threatens many relationships in outsourcing agreements. The difference is, however, that unlike an internal IT team, Fixnetix can supply a robust Service Level Agreement (SLA) which defines the relationship and our responsibilities as your Service Provider in commercial terms.
The pedigree of Fixnetix lies in helping financial institutions manage critical systems. We understand the pressures that our customers are facing today, and help them improve their cost space. As a result there is an improvement in the performance of the infrastructure that they rely on, and this enables companies to be more agile toward taking advantage of opportunities around the world so that they can provide a level of service that is second to none.