Swedish agency broker Neonet, a subsidiary of Orc Group, has joined financial technology provider SunGard’s global network to offer brokerage and order routing to its 2,300 connected brokers and asset managers.
Linking to SunGard Global Network (SGN) will help Neonet to access new international clients who want to route order flow directly to exchanges to improve execution speed and order management.
Noting falling global equity trading volumes, Carl Johan Wallin, global head of sales, said Neonet was increasing its focus on its core markets in Europe. His comments came after incoming Neonet CEO Joacim Wiklander shut down the firm’s New York trading desk, earlier this month.
Wallin explained that it was now more cost-effective to utilise SunGard’s existing network than add its own all-new connections. “The days of doing it all yourself via access to exchanges are over,” he said. “Partnering with SunGard helps us reduce our costs of expansion, drawing on their existing network to expand our sell-side offering and connection to other brokers. Moving from a member model to a partner model can also help us connect to areas such as Asia, for example, where we don’t have local access.”
Neonet currently serves clients in 25 countries and provides direct connectivity to 40 exchanges and alternative trading venues.
The SunGard Global Network offers services for equities, fixed income, listed derivatives, mutual funds, money market funds and other cash equivalents. It supports trading on 120 markets worldwide and links to 1,800 asset managers and 500 brokers, as well as interconnecting with third-party order routing networks. SGN’s international connectivity hubs also support low-latency market data delivery from various global markets.
Neonet’s parent company, derivatives-focused technology provider Orc Group, also provides connectivity to global derivatives and equities exchanges.