Real-time financial trading: test and opportunity for IP network providers

Real-time financial trading: test and opportunity for IP network providers

Real-time financial trading is an emerging opportunity for telco-led IP network providers in the next two to four years, but it will be a testing ground too. Initial requirements for low-latency, high-speed networks and secure data hosting will be followed by multiple requirements to offer managed services around network performance monitoring, applications management, and service support, as well as possibly wholly new electronic trading technologies. The pace of regulatory change and commercial innovation in this sector is accelerating, which means that telecoms operators have an important responsibility as the hosts for technology innovation.

Table of contents

Financial services a ripe opportunity for telcos

Real-time trading becoming a vertical in its own right

Telcos underpin financial trading market

Secure base for growing into managed services space
Exchange network deals 2007-08
Telco providers in financial trading markets
Altnets challenge incumbents
Regulatory changes affecting financial trading markets
The future for real-time trading and ECNs

Conclusion

BT Global Financial Services is the standard-bearer

Appendix: Service providers in real-time financial trading

Players include incumbents as well as newcomers

Table of figures

Table 1 Telecoms service providers in the real-time trading markets
Figure 1 BT’s exchange network agreements, 2008 vs 2007
Table 2 Service providers’ exchange network deals, 2007–08
Figure 2 Financial trading in the news
Table 3 Financial services company spin-offs, 2007-08
Figure 3 Importance of non-equity trading, and foreign exchange turnover
Figure 4 Real-time financial applications management