Today’s markets are often touted as “all about speed”, but that reach for low latency is only part of a successful strategy. Derek Haworth, president of Born Technology Solutions says that more firms are looking to spend more efficiently on technology, such as exchange connectivity and order book solutions. For his clients, its about finding the balance between financial technology and expenses.
“What we’ve been seeing over the course of the past year, year and a half, is that people are moving toward what I would call smart latency,” Haworth said, “where there is an understanding that spending an extra $100,000 to shave off another 200 nano-seconds isn’t really commercially or economically feasible. So we’re seeing the pendulum swing a little away from the lowest latency trade.”
“I think it’s more attainable today through groups like us who are willing to build interfaces to the 20, 30, 40 different systems out there and provide that service on a turnkey basis,” Haworth said.
Born Technology, formerly Born Capital based in Chicago, has also developed a new global order book for firms. While a multi-time zone order book may seem like its been covered by technology providers in the industry, Haworth says demand from customers for just such a product led them to build one in-house for clients.
“At any given time firm administrators, risk administrators, broker groups want to be able to see what’s going on across the entire firm on all their platforms at any given time,” Haworth said. “We haven’t seen any other systems that effectively integrate all transaction flow, in real time, across multiple platforms.”
This drive for such systems are now being outsourced at an increased pace, as firms look to maximize capital revenue and lower costs. Depending on the size and scope of the firm’s trading operations, such outsourcing can save hundreds of thousands of dollars to millions per year, he said.