Delivering operations on a global scale, what Fixnetix has to offer trading firms is a suite of products covering market data, pre-trade risk and trading access, venue connectivity and infrastructure, all within a fully managed environment.
After 2008 and the financial crash, increasingly stringent regulations have been introduced and as a result the needs of our clients have changed. Therefore we have seen a big shift in what firms are requiring Fixnetix to deliver. A higher drive for profitability, but under tighter budgetary constraints, has brought cost into focus and driven trading firms towards an externally managed solution.
Once upon a time, clients would have built their own systems and infrastructure and serviced everything in-house. However such a process is no longer cost effective, nor is it flexible enough to deal with a fragmented marketplace. Meanwhile, the clients internal IT teams are under intense pressure to deliver the exceptionally high service levels needed to maintain electronic trading systems.
As a result, trading firms are moving away from the traditional Capex model to an Opex model. They are slowing expenditure on existing legacy systems which will never be truly fit for purpose in today's trading environment, and instead are focussing their spend on outsourced operations offered by managed service providers such as Fixnetix. In doing so, Fixnetix delivers the cost savings that the client wants, as well as the service levels required in a mission critical environment for trading.
But it is not just a money saving exercise that brings clients to Fixnetix. It is a question of trust. Fixnetix is responsible for the mission critical systems and infrastructure of clients, without which they can not trade. If Fixnetix does not deliver its service to the highest of standards, the client can not operate to best effect in the marketplace. This would have wide ranging implications for the client, the client's customer base, and even the health of the financial markets. That is why it is so significant that some of the biggest names in trading have entrusted us with their operations. We drive ourselves hard to deliver the best of services, with a specialist team that comes with many years experience from within the investment banking world. It is knowing this which allows our clients to put so much trust in us, and this reputation within the capital markets which is seeing more and more trading firms come to us asking for solutions.