July 17, 2020

Why Haven’t Industry Utilities Gained More Ground?

Virginie O'Shea has written a post covering the idea of industry utility platforms and why they haven't seen more take up.  Given the amount of cost in the post-trade space for processing transactions it would seem an idea ripe for investment.

In my career I saw SwapsWire founded and sold, the DTCC TIW built and SwapClear take off. What I've also seen is FinTech firms with bright ideas struggle to get take-up for good ideas.  What we also forget is that many fund managers outsource their back-office processing the Third Party Administrators, why don't banks do this too?

The question which is hard to answer is this: Why do larger banks continue to maintain huge and complex back office platforms, when if they pooled resources they could have an equity stake in one huge complex back office provider, and then compete on the front office skills and capital efficiency?

I don't know of any bank who wins trading business by having a better back office – do you?

Photo by Randy Fath on Unsplash

Most Viewed


Related Articles

September 15, 2022

Tradefeedr Hires Alexis Fauth as Head of Data Science and Client Analytics



September 6, 2022

Siege FX announces the launch of NetFix



August 2, 2022

OSTTRA and LCH collaborate to reconcile bilateral OTC trade data


Post Trade Processing