Asset managers are moving towards hosted solutions for front-office trading technology instead of traditionally deployed systems to keep IT costs low and adjust to new upgrades with minimal problems, an executive with solutions provider Linedata has said.
Speaking to theTRADEnews.com, Bob Holland, senior product manger, fixed income and derivatives for Linedata, said the majority of new clients from the buy-side community this year have chosen hosted systems.
“Buy-side firms are increasingly looking at hosted instead of deployed solutions for their trading infrastructure to reduce the cost of maintaining and upgrading systems and putting responsibility on us as the provider to ensure there are no errors,” he said.
Linedata services ten of the largest 25 asset managers globally, and a growing number have recently indicated they will evaluate shifting from the deployed structure to improve efficiency.
“Even some of the largest asset managers with large IT departments are now considering moving to a hosted model, which was inconceivable only a few years ago,” Holland said.
Linedata’s flagship order management system LongView offers equities and fixed income functionality and serves around 100 asset managers globally.