For brokers, capital markets technology is key to delivering a global service

January 27, 2025

Key Takeaways

  • Buy-side customers need seamless global exchange access, continuous trading, and follow-the-sun support from sell-side partners.
  • Technological solutions for brokers ensure efficient global services through unified order management, middle office workflows, and centralized reference data.
  • Integrating regional platforms and empowering global teams provides a competitive edge with seamless service and operational efficiency.

In the current capital markets landscape, buy-side customers seek seamless access to global exchanges and products. For global investment firms, continuous trading in a wide range of markets is a core requirement. They also expect follow-the-sun support from their sell-side partners. In theory, global broker firms can satisfy these requirements by having offices strategically located around the world. However, effectively coordinating these separate teams to deliver a unified service is not easy. Technological solutions are key to providing an efficient global service to customers.

Buy-side investment firms are expanding their global reach, seeking a competitive edge over their rivals. Access to more markets worldwide allows them to offer their customers a broader, richer range of investment products. Major global broker firms are well placed to fulfill these requirements. They have a presence in core regional hubs and can also access emerging markets, either directly or via agreements with third parties. In addition to market access, global brokers can offer an in-depth understanding of the specific context of each market. From exchange rules through market structures to regulation, expertise is a key selling point in a competitive sell-side landscape.

However, market access and knowledge alone are an incomplete solution. At a time of increasing cost pressures, and operational efficiency is more important than ever, brokers must offer a ‘joined-up’ service, not just a global one. For a truly seamless “follow-the-sun” client service, it’s not enough to have globally located teams; these teams also must have global visibility and access. The goal is for all teams to be able to service all client orders, wherever in the world they originated. This capacity allows orders to be received, managed, and handed over while minimizing admin overheads such as handovers between teams. It also allows clients to receive a consistent level of service, no matter which desk they are interacting with.

Technological solutions for brokers can help to deliver a seamless global service by focusing on the following areas:

  • Order management: Unified access to client orders allows traders in different locations to take over from one another seamlessly and maintain the same service levels throughout the day. When combined with bulk order management tools, like basket trading, this can also deliver operational efficiencies, as traders can collaborate effectively to manage large order volumes without time-consuming handovers.
  • Middle office: When working with client orders, unified middle office workflows are as important as order management. A single global view of allocations and confirmations ensures that global teams have a shared understanding, and standardized processes, which result in greater efficiency.
  • Reference data management: A single central point of truth for reference data is key to allowing unified client order handling, booking, and allocations. It enables separate teams to collaborate seamlessly across the entire order lifecycle.
  • Seamless implementation: Fully integrating all this functionality into a global solution boosts operational efficiency by minimizing the need for separate logins and ‘screen switching’ between different applications.

Similar to brokers, delivering in-depth global market knowledge has been vital to technology vendors’ success. Firms have prospered by applying their local expertise in markets and regulation. However, as global access and operational efficiency become ever more important across the capital markets landscape, priorities are moving on. Increasingly, the ability to integrate separate regional platforms and empower global teams to work together effectively is becoming more critical Firms that can successfully achieve this will have a key competitive advantage.

 

ION Markets

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At ION, we’re embracing the challenge of helping our customers to deliver a global service. Our new FidessaOne service allows our customers to integrate their regional platforms and deliver a seamless experience for traders. Contact us to find out more.