Building an open developer community for the financial industry
Thu 29 Sep 2016
Matthias Wiederwach, founder of web-based financial systems firm Xinfinit, discusses how cloud-based solutions are paving the way for a host of new tools catering to the future of financial trading…
As the demand for faster and more sophisticated financial trading tools increases, it is envisaged that future trading platforms will need to adapt in terms of functionality and flexibility. What is required is a platform in the cloud that will revolutionize the way in which technology is used in the financial space, from cumbersome, single vendor and unscalable applications to a highly agile, cost-effective and vendor-neutral technology platform delivering significant value and ease of use to end customers.
From the early pioneering days of financial market trading, the dominant powers have driven end customers into closed financial platforms that have failed to offer scalable solutions across multiple market data sources. Not only that, there is a limited choice when it comes to accessing costly APIs and they do not always meet the end customer requirements.
Cloud and open-source
Open financial platforms, on the other hand, offer far greater flexibility and by making use of multiple non-propriety and fully flexible APIs, any financial services company can court far more usage and mind share. Success is all about adoption by developers, and businesses need to be able to focus on their core value proposition. This means simplifying financial trading tools so that people can do their work effectively. An open platform offers significant benefits and, for most organizations, it provides a plug-and-play solution that does the job required.
Financial services ranked fourth out of 12 industries in its potential for competitive disruption
The migration to cloud computing and open-source software paves the way to reducing development and operating costs while more quickly supporting new services and across multiple devices. Companies can easily save millions of dollars by switching from on-site services to cloud services and moving to open-source content.
Creating an open cloud-based ecosystem is a disruptive technology that will challenge traditional financial institutions that have for years monopolized the market sector. According to a study by the Global Centre for Digital Business Transformation (DBT), financial services ranked fourth out of 12 industries in its potential for competitive disruption within five years as a result of digital technologies and new business models.
Cloud-based web containers offer aggregated real-time market data from many global exchanges and over the counter sources. They provide data providers that sit on little treasures to source another channel to sell their data while developers leverage the market data infrastructure to build state of the art applications. Clients get to choose the best of breed within a cloud hosted “pay as you” go ecosystem.
For businesses looking to expand their own financial service offerings then white labeling an open ecosystem and hosting it on their own website is the best way forward. This allows them to maintain their own bespoke branded services and products and gain access to other organizations.
This can be a significant advantage for businesses that do not have the in-house resources to invest in the infrastructure, technology or experienced software developers. White labeling approaches can offer an integrated front and back office infrastructure with historical and real-time market data, client-based development tools and a variety of dedicated services.
Any open cloud-based platform that enables and gives impetus to a new class of infrastructure has the advantages of:
Cost Savings – Back-up centre costs are managed via cloud services without the need to spend on installation investment costs across multiple platforms. A single charting library avoids using multiple apps across various operating systems/platforms. Studies have shown that a fully-fledged cloud migration can help reduce processing costs by up to 80%.
Flexibility – A scalable, open platform with partner customization of widgets, technical indicators and a suite of drawing/chart publishing tools.
Performance – Applications are web-based and easily accessible on any browser or multiple devices.
Choice – Ability to integrate data from any market data provider and a decreased turnaround time to receive the market data clients want to see.
The way in which open cloud ecosystem platforms have developed over the past year is extremely exciting. Particular attention to future customer requirements such as accessing global market data, all contained within a cloud-based web container and a customized widget environment has marked the way for an array of new tools to address the most demanding of next-generation financial trading trends.