7 securities and investments market developments you need to know about

October 31, 2022

In today’s rapidly changing securities and investments market, capital markets firms need to stay on top of a variety of market trends, from soaring data volumes to the rise of modular platforms. Here are seven market developments you should be aware of.

1. Rise of the modular platform

Gone are the days when firms had no choice but to depend on aging legacy systems with limited functionalities. In today’s market, platforms that combine core processing functionalities with add-on modules and components can speed up the implementation process, minimize the risk of disruption and drive faster time to value. What’s more, a modular approach delivered by a single trusted provider can reduce your operational processing times – and it also means you don’t need to onboard new suppliers to access all the capabilities you need. Finally, modules – if offered on both an integrated and a stand-alone basis – represent an easy option if you’re looking for a flexible approach.

2. Integration and interoperability

The more easily a system can integrate into complex business environments, the greater its value, efficiency and viability. Unsurprisingly, as firms look to modernize their technology, they are increasingly favoring systems that are both interoperable and quick to implement. That means tapping into modular platforms that include built-in integration with existing client systems as well as taking advantage of open-source technology. In particular, front-to-end integration may offer you the best value.

3. Getting more out of data

Firms are struggling to keep on top of ever-increasing data volumes and disparate sources. So how can you get more value from the data available to you? New technologies like artificial intelligence (AI) can help you glean more insights from your data, identify patterns and give you the information you need to make faster and more effective decisions – as well as open up new opportunities for data monetization. Centralized and standardized data sources are key when it comes to getting more value out of data with less rework needed.

4. Resilience/scalability

In volatile markets, you need solutions that enable you to scale up quickly as industry volumes rise. However, legacy technology may not have the resilience needed to support a rapid increase in volumes. The solution: modern, resilient, cloud-based solutions that are better equipped to handle a sudden surge in activity.

5. Self-service

If you’re using legacy software, the chances are that you’re paying over the odds and are heavily dependent on your IT team for business-as-usual operations. With self-service models becoming more prevalent, there are new opportunities to reduce your dependency on IT for regular tasks like account management and static set up. This is due in part to advances in technology such as the use of machine learning to automate tasks with little or no dependency on the IT team.

6. Digitalization/new technology

Digital technology offers firms like yours an opportunity to fuel innovation, create better experiences for customers and get more value from existing data. By taking full advantage of new technology and harnessing new deployment models, you can not only compete more effectively but also attract and retain top talent.

7. SaaS partnerships

Increasingly, firms are looking for relief from labor-intensive and complex in-house processing. Forward-looking hosted models can provide the level of vendor partnership needed to meet your needs, as well as the right level of oversight. You can also benefit from mutualized monitoring and best practices that are cross-pollinated from other clients in the hosted community. All infrastructure and application upgrades are provisioned while support for regulatory demands is provided by experienced subject matter experts. In these turbulent markets, SaaS can give you the freedom and peace of mind to focus on your core business.

By keeping on top of these trends, your firm will be better placed to make better decisions, scale up more effectively and speed up time to value.

What FIS® brings to the table

If you weren’t wrestling every day with endless rounds of operational complications, just think what you could accomplish in terms of pursuing your strategic goals. That’s where the FIS Cleared Derivatives Suite comes in. This advanced post-trade solution not only replaces earlier versions of our Cleared Derivatives technologies but also expands their functional coverage. Our next generation offering, which supports both middle and back-office functions across exchange-traded and OTC cleared derivatives, comprises three main parts:

  • Core processing (middle and back-office functionality)
  • Add-on modules that can be licensed individually and are dependent on the implementation of core processing
  • Add-on components that can be licensed individually and implemented either as standalone or fully integrated with FIS Cleared Derivatives, heritage FIS Back Office (UBIX, GMI) or third-party systems

With over 100 post-trade derivatives clients, we are the industry-leading solution provider. Over half of our clients are leveraging FIS Managed Services, either via our Private or Hybrid Cloud. We also offer Business Process as a Service (BPaaS) services for clients looking at operational outsourcing.

Whatever your challenges and priorities, with our modular solutions and services and efficient implementation process, you benefit from ultra-fast time to value.

Get in touch to find out more.

About the Author
Abhishek Kumar, Senior Product Manager, Trading and Processing, Cleared Derivatives, FIS Global
Abhishek KumarSenior Product Manager, Trading and Processing, Cleared Derivatives, FIS Global

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