Trading platforms: FXall hooks into world of equities
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Trading platforms: FXall hooks into world of equities

As an agreement between FXall and ITG shows, multi-asset platforms can be created virtually.

If, as many predict, the future of trading and investment is multi-asset, it would seem that a lot of successful platforms will struggle to survive. However, reports of their imminent demise will almost certainly prove premature for several reasons. The first is that while much is made of multi-asset trading, the reality is that most traders, whether on the buy side or sell side, tend to specialize in one product class. It is not as if they walk into their trading rooms, notice that foreign exchange is quiet and so start punting around in equities and fixed income.

This alone might be enough to ensure that good, solid single-asset platforms will continue to thrive. Another issue is that off-the-shelf multi-asset systems might well prove to be Jacks of all trades, lacking the specific functionality that is required by specialist traders.

Of course, there is some natural demand for multi-asset platforms, but what is more likely to drive their development and uptake is the desire for institutions to gain cost efficiencies across their business areas. Ripping out three or four different platforms and replacing them with one would appear to have an obvious appeal.

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