At the TradeTech Europe conference in London, Derek Du Preez reveals how changes in technology have opened up access to market and looks at how this benefits start-up traders.
Historically, technology costs have stood as a barrier to entry for the start-up trader looking to trade on the financial markets. Now vendors are offering co-location and cloud services which remove the onus on traders to host and manage their own kit.
Fred Ponzo, GreySpark, explains how easy it is for start-ups to implement their kit in a co-located datacentre in another country, since connectivity from both data vendors and brokers and clearers is widely available. Five years ago this wasn’t possible, Ponzo points out, and now start-ups have the chance to start trading and make a living from it.
Bob Giffords, banking and technology analyst, goes on to agree with Ponzo, noting how there has been a rise in start-ups in the market with variables such as trading costs coming down, putting pressure on clearing and settlement to lower costs too and recent innovations in the cloud allowing for cheaper entry point.