Modern Technology in Trading Experience

As the trade market becomes increasingly dominated by technology, so has the ease of trading. With technology continuing to advance, more features can be explored to enhance the trading experience and gain competitive advantage for market makers. As Michael McCarthy, chief market strategist at CMC Markets, once observed, technology is making financial markets and trading more competitive.

Modern technology such as Enterprise Resource Planning (ERP) and Commodity Trading and Risk Management (CTRM) allows companies to achieve scalability and profitability with ease. Front-end system allows for automated trading, across a plethora of asset classes, enabling trade orders and confirmations to be recorded for accounting purposes. The benefit of automation is to ensure quicker and more precise decision-making processes on trades while relieving traders of manual work on the back- and middle-end. Over-the-Counter (OTC) system enables peer-to-peer trading of a wide variety of digital and real-world assets, and for anonymous trading. Trades are able to make profit from a variety of trading contracts — and execute on the trades all in one platform.

End-to-end Workflows Streamlined

While each technology (OTC, front-end trading) is capable on its own, the full suite of trading features can help to provide even greater profitability and more cost savings. Streamlining trading processes helps to give traders insight into the entire trading process from procurement to post-trade functions, allowing the trader to see his immediate and long-term follow-up actions and orders.

Having a streamlined process for workflows helps to provide operational efficiency between features required in the trading process. Optimising workflows is imperative in helping you keep track of your progress. Furthermore, it is cost-saving: having data derived from the streamlined supply chain management workflows helps to justify the elimination of certain processes and automate other processes, which optimises trading.

Hydra X, a Singaporean fintech company, builds next-gen trading and financial marketplace technologies to enable access to multiple venues and assets. Hydra X provides the full suite of features to facilitate market makers execute trades:

• Front End Module
• Middle and Back Office System: including Account Management, Risk and Margin Management, Accounting, Inventory and Customer Relationship Management (CRM)
• Request For Quote (RFQ) / Over-the-Counter (OTC) System
• Matching Engine
• Pricing Engine
• Post-trade Clearing and Settlement

Digital trading systems like ERP and CTRM, as well as features like front-end trading and OTC modules are essential to helping achieve a smooth trading experience, increase scalability and profitability. Front-end trading helps to increase speed and accuracy of execution, and OTC helps to increase the variety of trade contracts one can engage in. Streamlined operational workflow helps to provide oversight over the entire trade process, and also saves cost as unnecessary workflows can be eliminated or automated. All are cost-reducing strategies that help traders maintain a competitive advantage in the market. In the technological arms race, it may be prudent to keep updated on the latest useful trading technologies so as to gain an advantage over the trade market.