Systems provider TradingScreen has launched TradeExchange, an application service provider (ASP) solution that allows exchange members to connect directly to exchanges without the need to install the associated technology infrastructure.
Because the connection is offered on an ASP basis, TradingScreen, rather than the user, manages the creation and maintenance of the connection.
TradeExchange provides a network of managed connections to many of the world’s largest equity and listed derivatives exchanges. As such, it also allows users to manage multiple exchange connections.
According to Jonathan Jenkins, sales director at TradingScreen, connectivity through TradeExchange is quicker and cheaper than a user-hosted connection.
“Typically, a lot of the existing products that allow direct exchange access have problems with cost and the lead times to get them up and running,” he said. “The infrastructure we have put in place is totally managed by us, and having a shared infrastructure means we can make it cheaper and spread the costs across members.”
The solution is aimed predominantly at smaller brokers, but buy-side firms with exchange memberships can also take advantage of it. The buy-side may also be able to benefit indirectly from the connectivity TradeExchange offers smaller brokers. “The trading environment has changed massively over the last couple of months,” said Jenkins. “Firms that traditionally used global brokers are now looking at increasing their range of brokers. To facilitate that,
smaller brokers might be interested in taking on new exchange memberships. An ASP system like ours is a cost-effective way of managing those connections.”
TradeExchange integrates with TradeNet, TradingScreen’s global network of more than 2,100 buy- and sell-side firms. TradeNet allows clients to route orders to exchanges they are not members of. “It also enables remote memberships emerging markets,” said Jenkins. “It is very difficult for some brokers to have remote membership in these places without some kind of local infrastructure.”