With global voice collaboration platforms and the rise of high-frequency trading, the demand for a robust infrastructure has never been greater. Your organisation needs to run as effectively as possible, not just to stay competitive in a fast paced market but also for the safety and security of your clients.
This article will explore the importance of robust infrastructure in trading and how it can impact your firm's success.
What is trading IT infrastructure?
IT trading infrastructure refers to the technical architecture and systems that facilitate electronic trading activities in financial markets. The success of electronic trading activities depends significantly on the quality and robustness of the IT trading infrastructure, which can directly impact a firm's profitability and reputation in the marketplace.
Why maintaining a robust trading IT infrastructure can be a challenge?
It can be challenging to build and maintain a robust IT infrastructure as it takes planning, investment, time and effort. Trading firms need to balance the need for a strong IT infrastructure with implementation and maintenance costs.
Additionally, the IT infrastructure needs to be updated regularly to keep pace with changing technology and evolving security threats. Vendors like Speakerbus offer on-premise and hybrid flexible support agreements, while cloud services like CADENCE are security patched and maintained continually.
Why is IT infrastructure important for trading?
A robust IT infrastructure is critical for maintaining uptime and ensuring that trading systems are always available anytime and anywhere. Even a few seconds of downtime can result in significant losses in fast-paced, complex trading.
Below we outline the key advantages of maintaining a powerful IT trading infrastructure:
Redundancy ensures a backup system is in place if the primary system fails. For example, a redundant data centre can ensure that trading systems remain operational even if the primary data centre experiences an outage. The platform should also support HA (High Availability), e.g. failover a server or platform to a secondary server if the primary one goes offline. These redundancy options help minimise the impact of downtime and reduce the risk of financial losses.
As trading firms grow, their IT needs can increase significantly. A scalable IT infrastructure ensures that trading firms can accommodate growth, allowing trading systems to handle increased volumes of voice, data and transactions.
The platform should also be able to scale down when the market conditions demand it, enabling firms to stay competitive and take rapid advantage of new opportunities, locations or market options.
Trading firms deal with sensitive financial information and must protect it from unauthorised access. A well-designed and managed security procedure can help prevent data breaches and ensure that client information remains confidential. This is essential to building client trust and protecting your firm's reputation.
Leverage new technologies
A robust IT infrastructure can help trading firms leverage new technologies and stay ahead of the competition. For example, machine learning and artificial intelligence are becoming increasingly prevalent in trading. A firm with a flexible infrastructure vision can implement these new technologies more efficiently and gain a competitive edge.
Approaches to consider for a robust trader voice IT infrastructure
One approach to building a robust IT infrastructure is to leverage cloud computing. Cloud computing can provide a scalable and flexible infrastructure that can be adapted to the needs of trading firms. Cloud providers can also handle maintenance and updates, freeing up internal resources for other critical tasks.
Another approach is to work with specialised IT providers that can design and implement a custom IT infrastructure for a trading firm's specific needs. These providers can bring expertise in trading technology and security, helping to ensure that the infrastructure is tailored to the firm's unique requirements.
Summary and next steps
Robust IT infrastructure is critical for success in the trading industry. It can ensure uptime, provide redundancy, enable scalability, enhance security, and help firms leverage new technologies. However, building and maintaining a robust IT infrastructure can be complex and expensive. Trading firms must balance the need for a robust IT infrastructure with implementation and maintenance costs.
Working with Trader voice cloud providers or specialised vendors can effectively build and maintain a robust Trader voice IT infrastructure - that meets your firm's needs. By investing in a robust IT infrastructure, trading firms can improve their competitiveness, reduce risk, and enhance their ability to serve their clients.
Speakerbus acknowledges the significance of having a solid infrastructure in place. In recent months several clients have attested that our QORUS platform, which delivers trader voice (Private Wires, Hoot, Intercom and Telephony) to global clients, holds a distinguished position among trading floor platforms, having never experienced any notable or substantial service interruptions.
To learn more about how we can help your firm achieve its goals, visit our solutions page or get in touch to discuss your business needs and challenges.