Single-Dealer Platforms offering high precision toolsets to give clients what they need

Banks have made major investments in single-dealer platforms in recent years but as the technology is commoditised, platforms need to add unique value in a fully customisable format if they are to gain market share. Joel Clark reports

For all the investment that has been made in single-dealer platforms, there is still a degree of mystery that surrounds such trading systems in the foreign exchange industry. At a time when regulators are pushing trading towards multi-dealer systems wherever possible, and end-users are increasingly looking to prove best execution, it is not entirely clear how a direct dealing channel with a single bank will trump other options in the future.But nearly 15 years after the first single-dealer platforms went live, there is barely a market-making bank in the industry that has not revamped its offering and invested major spend in the process in recent times. No longer is it just Deutsche Bank’s Autobahn or Barclays’ Barx that dominates the space, but a string of colourfully named platforms – including Neo, Velocity, Cortex, Commander and Matrix – have lined up to challenge them over the past few years. Even for some of the big banks however, the renewed focus on SDPs has come as a...continued

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