Multiplatform as the new bridging reality

Author: Albina Zhdanova

This week, Finance Magnates and Albina Zhdanova, the COO at TFB, came together to discuss the latest events in the market and take a deep dive into the multiplatform trend.

In this article, we are going to go through the key points that were discussed.

What is happening right now?

Due to the recent shake-up with trading platforms, we are seeing considerable interest in alternative platforms in addition to the existing ones. Brokerages have experienced an unexpectedly high impact risk, and they’ve learned their lesson.

There are three directions that we see both existing and prospective TFB clients taking:

• Some companies have already completely moved to a new platform.
• Some have kept the existing platform and added new platforms to diversify the risk.
• Those who were only considering opening their company when the situation unraveled went straight for alternative trading platforms, ignoring the current market leaders.

Is interest in multiplatform trading brand new?

Contrary to what it looks like at the moment, the interest in using multiple trading platforms is not entirely new. Yet, it has definitely become a much higher priority recently.

Alternative platforms already existed before the recent market shift, and the demand has been slowly building. Many of these platforms targeted market players who didn’t see their specific requirements met with standard platforms.

The change is here - what now?

The finance industry is no stranger to turbulence and hecticness. Yet many brokers were comfortable throughout past events because their business and technical models were rather established.

Recent events have changed this, so now many brokerages are being forced to undergo a significant change. There are many ways to adapt to the new environment, but here is the algorithm that the TFB team has created and optimised while helping clients out over the past several years:

• Choose the platforms you want to add to your environment.
• Decide if you plan to have a separate team for a new platform or have an existing team support everything.
• Figure out the migration process. As for TFB, we can help with that since we’ve been helping brokers migrate to our bridge for many years, and we understand how the process works.
• Deploy new platforms and start moving clients over slowly, watching that everything works well for the first few weeks.

Tip: If you choose to migrate, consider running a test migration first. Make a copy of your files, move them over, and roll them out in the new environment. If everything goes well, proceed with the full migration.

If you are an existing TFB client, reach out to us, and we can help you to connect any third-party trading platform through external APIs.

Should brokers develop their own internal trading platforms?

In the wake of the market shift, some brokerages are considering developing their own trading platforms to minimise future risks and dependence on third parties.

It is definitely an option, and, by the way, you would still be able to use the Trade Processor liquidity bridge if you were to develop your own trading platform. That’s possible thanks to private aggregation. The bridge is not centralised, so everyone has their own personal setup and full access to the database and APIs. It means that if you want something, it can be configured for you.

However, as you make the decision, consider that you’ll have to be prepared to spend at least a year on development. In terms of resources, this is a top-tier project, so you’ll have to assign C-level specialists with top skills in order to create a secure and robust system. In addition, once the platform is released, there will be the constant process of updating and upgrading.

The process is very complicated, and one must be confident they have enough resources to execute it. But if you’re up for the challenge - great! Having an internally developed platform will give you the greatest flexibility and freedom.

Final thoughts

The market is changing, and how we partner with others is changing too. Even more brokerages will be interested in new options and looking for ways to adapt and integrate multiple products moving forward.

Navigating the change is easier and more efficient with a reliable technology partner, such as Tools for Brokers. Our professional team will help you with:

• Connecting the new platforms.
• Optimising the entire process for maximum efficiency.
• Offering an all-in-one interface to manage platforms.
• 24/7 professional tech support and enhanced monitoring system

If you’d like to learn more about what TFB can do to strengthen your operations, please email us at sales@t4b.com.