The growing need for techies with multi-asset class trading knowledge
The debate about moving desks across to multi-asset class trading has been raging on for some years now, but significant challenges still remain - not least of which is a relative lack of IT talent to develop the systems needed to support such a migration.
There's no shortage of banks looking to roll out platforms that can trade across multiple asset classes. Goldman has stated its intention to focus on this area in 2010, whereas BarCap and Deutsche Bank both offer such systems - through Barx and Autobahn, respectively.
But there are still significant challenges to embracing this move entirely, according to speakers at the WBR TradeTech Europe 2010 conference.
John Greenan, global multi asset connectivity manager at BNP Paribas Fortis Investments, said that most firms have a "system of systems" and that it's not simply a case of "doing X, and then reaching nirvana".
"Ultimately, you've got to look at who your clients are and whether they're pushing for this agenda," he says. "The technology is mainly out there and available, it's a case of working with vendors and suppliers or building it in-house in a way that actually adds value to your process."
Demand for technologists with a deep understanding of multiple asset classes is picking up, but this knowledge - combined with the technical expertise - is still a rare beast.
Paul Bennie, director of IT in finance headhunters Bennie MacLean, says: "We've been mandated for MD level hires for technologists who can build a platform to sit across multiple asset classes from scratch. These people are in short supply, as are developers who have a deep understanding of the technology required to build multi-asset trading systems."
From a budgetary point of view, the benefits of developing a single system to sit across various asset classes - rather than a large number of siloed platforms - are obvious. However, is there a demand from a trading perspective?
Chris Jackson, head of execution sales at Citi, says: "From a hedging point of view it makes sense - the derivative hedging of an equity position or the FX versus the equity position. However, from the markets point of view, there are very limited situations outside of hedging where you would look to trade multi-assets within a portfolio."
