Transaction Network Services (TNS) has released the findings of the Frost & Sullivan executive brief, Managements of the Modern Trading Ecosystem: Ensuring Financial Markets Continuity in the Midst of Global Volatility.
TNS, a market data services, connectivity, and infrastructure provider, commissioned the brief with partner company Equinix. According to the brief, the instability of the current trading infrastructure and ecosystem is due to a series of factors.
The increasing volumes of market data is cited as a cause, along with the new network routes, technologies, and exchange options available to clients. The technology required to keep up with these developments can often require infrastructure changes, putting pressure on companies.
Additionally, geographical expansions of operations require considerable legwork, and the constantly expanding ecosystem of trading participants requires many individual network connections.
The brief also looks at how financial trading companies are having to change how they trade, taking into account technology, data use, geopolitical issues, and climate change. Market service providers (MSP) are a way to ease the pressure, offering several solutions including cloud, market data, and virtual private networks to bring together industry endpoints, TNS claims.
Jeff Mezger, vice president of product management for financial markets at TNS, says: “Trading organisations looking to co-locate or expand into new data centers need to seriously consider if they have the skills, understanding, resources, and bandwidth themselves. This analysis provides a comprehensive case for the benefits of outsourcing operations to a managed hosting, colocation, and connectivity service provider.”
Clare Walker, principal analyst at Frost & Sullivan, adds: “Having global reach with local support can create faster time-to-market for trading firms adding new exchanges and points of connectivity. However, getting local expertise in exchange nuances can be difficult. By partnering with companies that have existing exchange relationships, firms can see less downtime and fewer lost trading opportunities.”
Image: sasun Bughdaryan 