Capital markets, today, face unprecedented challenges around their scope and function. The purpose that capital markets serve—part complementary and part competitive to the banking industry—has come under the increasing scrutiny of regulators across the globe. While markets evolve, both in response to regulations and the circumspect economic climate, the key imperative in navigating through the present scenario is to look at differentiators and competitive advantages that will sustain the business, as it stands today, and as it incrementally evolves.
The differentiators around various product offerings are increasingly blurred while competitive advantage around financial innovation is on a tight rein forcing focus on inward-looking innovations. These inward-looking innovations include exploiting efficiencies and tapping resources in imaginative ways to create operational differentiators. The key operational differentiators in today’s environment are the “speed edge” provided by the low latency paradigm and the “lean and business focused operating model” provided by the cloud computing paradigm.
In this white paper, we provide an in-depth commentary on the context, adoption and implications of the latency-driven operational differentiator. Through a holistic perspective covering the trading value chain, we strive to appeal to the challenges and priorities of trading business managers, operations managers involved in trade processing and IT managers supporting the dynamic trade processing environments.