Capital Markets Solutions
Innovation, trading speed, and the ability to rapidly adapt to changing market conditions continue to define success in the Capital Markets sector. Mergers and acquisitions, globalization, and direct market access have intensified competition. While striving to satisfy customers and increase revenues, firms must also optimize operations to handle margin compression, higher volumes, algorithmic trading, black-box trading, structured products, derivatives, and new regulations.
The majority of leading broker-dealers, exchanges, and buy-side firms rely on TIBCO for the software infrastructure to compete and thrive in these turbulent times.
TIBCO has been developing and delivering solutions for the securities industry for two decades. Key focus areas include:
Next-Generation Trading Infrastructure
To rapidly adapt to changing market conditions, firms need to be able to manage and respond to increasing transaction speeds and higher volumes of data. Decimalization spurred the increase in speed and volumes by shrinking spreads and forcing firms to migrate to electronic order execution. The dramatic growth of the hedge fund industry has compounded this challenge.
TIBCO customers are meeting the challenge with a next-generation trading infrastructure based on TIBCO Enterprise Message Service™, high-performance messaging software that powers the communications infrastructure of the world's top financial institutions. Enterprise Message Service provides:
- Low latency delivery of market data
- Fast, reliable access to trading venues
- Tight integration to automated execution services
When Microseconds Count: TIBCO recently introduced a hardware messaging appliance designed to accelerate the capabilities and performance of TIBCO's messaging software.
Risk Management Infrastructure
Increasing price volatility, trading volumes, and market velocity – coupled with expanding use of derivatives and structured products – makes it imperative that firms establish a robust, real-time risk management infrastructure. The increase in trading volumes and market velocity push more data into the risk management systems, making the real-time calculation of position and exposure more important than ever. With derivatives and structured products, a single trade forces firms to manage risk across multiple product lines, taxing risk management systems that are focused on product silos.
TIBCO customers have tackled these challenges with a robust, real-time risk management infrastructure that leverages TIBCO's messaging and SOA suite of products. TIBCO's risk management infrastructure provides:
- Better risk metrics derived from clean, current, consistent, and comprehensive data and delivered to risk management applications
- Global visibility of risk metrics across product lines, geographies, and other organizational boundaries
Trade Lifecycle Management
Margin compression and increased trade automation have driven an increase in the number of transactions that outstrips the increase in shares traded and a decrease in profit margin per transaction. As a result, securities firms are focusing on the back office for opportunities to improve efficiency while enhancing customer service.
This strategy is paying off TIBCO customers, who are deploying TIBCO's business integration, business process management, and business optimization software to automate different aspects of the trade lifecycle. Benefits include:
- Fewer trade breaks by targeting the leading cause of these breaks – incorrect or missing reference data – through the connection of security, legal entity, and customer master databases to the dozens of applications in the firm.
- Reduced operational risk as automating the distribution of trade information decreases trade failures by removing the errors associated with repeated manual data entry of trade information.
- Lower operating costs with streamlined exception management processes from detection through to reconciliation, which reduces the costs and fees associated with trade exceptions.
- Improved customer service with immediate visibility of any trade anywhere in the lifecycle, which gives management the ability to respond rapidly to positive and negative events.
