We are pleased to announce THETA has been accepted onto the Microsoft for Startups programme. Through this programme, THETA will continue to build a strategic collaborative technology partnership with Microsoft. We will have access to a variety of Microsoft technical and business resources including partners and tools which will help us to build and scale our business and service offerings covering cloud technology, best practice, and business development.
Source: OTC Space Future Focus Interview on 1 April 2020
Future Focus – The Third Wave of Electronic Trading
We spoke with Abdullah Hiyatt, CEO and Co-Founder of THETA Trading Technologies, about the changing requirements of the buy-side, the inflexibility of incumbent vendors’ solutions, and the need for a modular and flexible technology infrastructure to increase efficiency, flexibility and transparency.
What Are the Key Technology Issues Faced by the Buy-side?
“The buy-side is faced with heightened levels of complexity across investments, operations and regulations, including increasing margin pressures, and shortcomings in respect of automation and legacy systems. This is compounded by operational inefficiency and a lack of STP, combined with the ever-present threat of security and data breaches.”
“Firms are increasingly consolidating their trading activities and creating multi-asset trading desks, but technology solutions are falling short. There is a lack of viable options when it comes to integrating in-house technology with multiple vendor platforms and inflexible UIs [user interfaces] in use today.”
“Existing O/EMS platforms focus largely on cash products, with little effective support for derivatives, and certainly not structured products or complex instruments. Legacy technology stacks are showing their age, are difficult to access and expensive to implement, maintain or upgrade. These systems are unsuitable for a modern, digitalized business world where smart devices such as phones and tablets are ubiquitous.”
What Solutions are Needed?
“The market is building on the lessons learned in the first two waves of electronification – initially for listed products in the exchange world and then for OTCs, specifically FX, on the sell-side.”
“The third wave centres on electronification for all instruments, be they cash, derivatives, listed or OTC. This third wave sees a reengineering of the established electronic trading model to deliver the enhanced digital-era connectivity and transparency.”
“The right smart tools need to be made available to buy-side clients looking to trade. The market needs a truly multi-asset trading capability accessible through a digital framework and via a fully extensible API.”
“Agile delivery is a cornerstone of this new model. Software as a service (SaaS) offers an exponential increase in terms of time to market. Projects involving the deployment of “off-the-shelf” technology that formerly took months (or even years) can now be completed in as little as a few hours.
“Also, a subscription model lends itself to flexible pricing to accommodate a firm’s changing needs, while also ensuring ongoing reinvestment in the underlying technology.”
What is THETA Doing?
“We have created Apollo, a purpose-built multi-asset O/EMS trading infrastructure, which supports FX, Fixed Income and Equity trading. We provide the Buy-side with flexible tools to access direct execution channels, aggregators, and venues, combining this with trading and risk controls, and post-trade services.”
“Flexibility is the key to our infrastructure, as we recognise that not all clients want every supported component. We use a SaaS model, meaning that modular services can easily be tailored to meet a client’s specific needs. Modules are deployed quickly, and future upgrades are simple and cost-effective. We support rapid deployment, globally via a HTML-5 browser that requires no code, install or plug-in. Clients can also access the platform via an open API and integrate fully with existing front-to-back ecosystem via FIX.”
“Apollo is launching in Summer 2020 with a Fixed Income and Equities O/EMS, then we are adding FX. All of these assets should be live for the Buy-side by the mid of next year.”
How Does This Benefit the Buy-Side?
“Enhancing connectivity, efficiency, flexibility and transparency across all products, whether they are cash securities or derivatives, listed or OTC, this new model for electronic trading provides firms with the flexibility and tools needed to thrive as market structure and the trading landscapes continue to evolve.”
“Ultimately our multi-asset trading architecture redefines efficiency, flexibility and transparency for the Buy-side.”
We’re thrilled to announce THETA has been accepted on the NatWest Entrepreneur Fintech Accelerator .
As part of NatWest’s commitment to encouraging entrepreneurship, the fully-funded accelerator programmes have been tailored to empower established businesses looking to grow.
#NatWest #PowerUp #FinTech #CapitalMarkets #TradeSmarter #SaaS
London, 6th February 2020 – THETA, the specialist provider of buy-side trading technology as a service, has appointed Peter Meddemmen as its Chief Technology Officer.
Industry leading technologist, Peter has more than 30 years of experience in Capital Markets managing technology for multi-asset solutions across the full order-execution life cycle, including front to back workflows, risk, security, legal and regulatory framework.
Peter joins THETA from Bloomberg, where he held several senior positions in the Trading Solutions team since 2007. Previously, Peter held CTO positions at City Index and GL Trade (acquired by Sungard in 2009). Earlier in his career, Peter was the VP for technology at Thomson Financial (now Refinitiv, jointly owned with Blackstone Group).
Peter will be responsible for all technology delivery, as THETA moves towards product launch later in 2020. Over the past 9 months, THETA’s next generation cloud native multi-asset trading technology blueprints and prototype have been validated by industry experts and leading asset managers, equivalent to $5 trillion AUM.
Abdullah Hiyatt, THETA Founder & CEO, commented: “Peter has a wealth of domain and technology expertise to drive our engineering capability as we prepare for our platform launch and execute our innovation strategy. He complements our growing team of senior industry experts that includes Co-founder and Head of Product, Paul Wallace, former Head of Fixed Income Dealing at Aviva Investors.”
Peter Meddemmen commented: “I am delighted to be joining THETA and to be part of a fantastic team. The post regulatory financial market and the implied costs have seen institutions forced to change their business model, a model which THETA fits perfectly. I am hugely excited to be part of this ‘wind of change’.”
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We’re thrilled to announce we’ve been accepted into FinTech Sandbox’s Data Access Programme. We join a driven group of entrepreneurs, finance professionals, VCs, and thought leaders that all claim one thing in common, we’re data nerds!
FinTech Sandbox offer early stage start-ups financial data feeds and APIs for development purposes. They provide a robust set of market, banking, investment and corporate fundamentals data. FinTech Sandbox Data Partners have accelerated approval for FinTech Sandbox programme participants, allowing for a fast and streamlined licensing process. Data Partners include Refinativ, Morningstar, S&P Global Market Intelligence, CME Group, Dow Jones, IHS Markit, Dun & Bradstreet, Moody’s Analytics, and Euromoney Tradedata amongst others.
THETA CEO, Abdullah Hiyatt, shares his thoughts on riding the 3rd wave of electronic trading – old thinking and fading legacy technologies are giving way to new models and approaches as the buy-side prepares to welcome a new era of electronic trading.
The consolidation of trading desks and infrastructure to address the ongoing convergence in market structure across asset classes is increasingly common. But current buy-side technology solutions fall short. Fortunately, old thinking and fading legacy technologies are giving way to new models and approaches as the buy side prepares to welcome a new era of electronic trading.
The onus is on buy-side firms today as never before to reassess where they generate value and performance return. But as they step up their pursuit of alpha, right across the enterprise – from the C-suite through to trading and sales teams – they face a daunting array of challenges. The heightened levels of complexity across investments, operations and regulations. The uncertainty engendered by Brexit. Increasing margin pressure. Entrenched shortcomings in respect of automation and legacy system handling. The ever-present threat of security and data breaches.
Against the backdrop of this highly pressurized operating environment, firms are looking to capitalize on those areas and activities that provide a competitive edge. To this end, the consolidation of trading desks and infrastructure to address more effectively the ongoing convergence in market structure across fixed income, foreign exchange, equities and derivatives is increasingly common. In taking that step, firms can also expect to reap cost and other efficiency benefits that will positively impact their bottom line.
Yet as firms look to consolidate their trading activities within multi-asset hubs, current buy-side technology solutions are falling short. Buy-side users are left frustrated at the lack of viable options when it comes to integrating their own in-house technology with the myriad of vendor platforms and inflexible UIs (user interfaces) in use today.
Many of the electronic trading systems that dominate the market today date back to the end of the previous century. Breadth of functionality is limited, notably when it comes to providing direct and smart execution for fixed income – despite the clamor from the industry for just such a capability over the past five years.
At present the focus remains largely on cash products, with little effective support for derivatives, and certainly not structured products or complex instruments. Legacy technology stacks are showing their age, at once difficult to access and expensive to implement, maintain or upgrade, and wholly unsuited for a modern, digitalized business world where smart devices such as phones and tablets are ubiquitous.
A more open and flexible model is needed to transform this fragmented, siloed landscape – a holistic approach that can overcome the deep-rooted challenges the buy side currently faces as it looks to trade globally across multiple asset classes.
Building on the lessons learned in the first two waves of electronification – initially for listed products in the exchange world and then for OTCs, specifically FX, on the sell side – the third wave that is now breaking around us centers on electronification for all instruments, be they cash, derivatives, listed or OTC.
This third wave sees a reengineering of the established electronic trading model to deliver the enhanced digital-era connectivity and transparency demanded by heads of trading and their operations teams, enabling them to build assets and grow their firms.
It is about making the right smart tools available to buy-side clients looking to trade either through direct execution channels or via aggregators and venues. It is about creating a truly multi-asset trading capability accessible through a digital framework and via a fully extensible API. If a client lacks a digital channel, it will be provided, while existing channels can be integrated with an API. It means freedom from having to manage the bits and bytes of market connectivity and core trading functions.
Agile delivery is a cornerstone of this new model. Software as a service (SaaS) offers an exponential increase in terms of time to market. Projects involving the deployment of putatively “off-the-shelf” technology that formerly took months or even years can now be completed in as little as a few hours.
In the event of future new regulations or other market changes such as Brexit, SaaS also means future upgrades are at once simple and cost-effective. Its subscription model lends itself to flexible pricing to accommodate with a firm’s changing needs, while also ensuring ongoing reinvestment in the underlying technology.
Enhancing connectivity, efficiency, flexibility and transparency across all products, whether they are cash securities or derivatives, listed or OTC, this new model for electronic trading provides firms with the tools they need to thrive as market structure and trading landscapes evolve.
By removing obstacles to the unimpeded flow of data and opening the way to seamless and efficient end-to-end lifecycle management, it allows value to be pushed upstream to deliver better investment decisions – and lift returns on investment for end investors.
Find the article on TabbForum, first published 15th October 2018.
Theta is the 1st FinTech start up selected to present to the Dragons’ Den panel at TradeTech FX scheduled for September 12th in Barcelona. Feedback so far from prospective clients, technology partners and market stakeholders is extremely positive which is where this recommendation came from. An award will be presented to the winning start up.
Find more information here!