Single Dealer Platforms – Another Day Another View
WallStreet & Technology offers a view on Single Dealer Platforms (SDP). Over the last few years there have been a number of articles stating that SDP’s will either take over the world, or are a dying breed. The net out of this latest article is unsurprisingly a view that Single Dealer Platforms and Multi Dealer Platforms will be combined by either banks or clients to offer a subset of services based on the clients needs – best of breed (effectively a type of mashup).
Further, the article hints at the opportunity for non-bank/clients to offer custom aggregation SDP/MBP. Obviously, this is easier were SDP/MBP’s already offer features via FIX or similar API’s. However the problem area will be in the User Interface (UI) space, where for example a client wants Bank A’s FX functionality, Bank B’s Bonds, and Bank C’s Repo’s. It becomes even more complex if a client wants a subset of an asset class – unless of course the UI has been built in a very modular way. We’ll ignore the single sign-on issues for now.
Part of the solution maybe the App Store concept that Apple has helped drive into so many markets. Deutsche bank has such an App Store offering. As to how well it would work in the SDP/MBP aggregate arena is another question.