This follow-up to last month’s post will discuss how the experience of B2B solution providers is relevant to financial institutions involved in developing global transaction services (GTS) on platforms. The examples come from Ariba, whose vision has enabled companies to facilitate and improve B2B procurement processes via the Internet. In 2006, Ariba decided it was time to approach a lower-tier marketplace that comprised small and midsize companies. Technology innovation enabled the shift, thanks to the introduction of the Software-as-a-Service (SaaS) delivery model. Ariba also completely re-engineered its product suite in line with the SaaS model; as described by one of … Continue Reading →

A panelist at one of the streams at the EMEA FIX Trading Conference on March 1 ventured the view that high-frequency trading (HFT) “would explode” if and when central clearing and settlement costs in Europe became more competitive. HFT can only operate successfully in markets that have high levels of liquidity. The markets must be supported by robust central clearing and settlement systems or service providers that are capable of handling high volumes of transactions at competitive fee levels. Transaction costs tend to be forgotten in the equation, but are highly relevant when financial institutions are executing very high numbers … Continue Reading →

Europe has spent the last 10 years working toward a single European marketplace. Does the news of an NYSE Euronext and Deutsche Boerse merger mean that Europe is fundamentally closer to such a goal? The new entity would command nearly 30% of European trading, but would have a significant presence in the Euronext and German markets only — the U.K., Italian, Spanish, Swiss, and Nordic markets would remain fragmented between their incumbent exchanges and multilateral trading facilities (MTFs). The only venues that have really come close to creating a single, pan-European venue are the MTFs, mainly Chi-X and BATS Europe. … Continue Reading →