Last week, Thomson Reuters President of Financial & Risk David Craig spoke to the Financial Times Trading editor Philip Stafford about how Thomson Reuters is evolving and adding value for customers in a changing financial markets environment.
Over the past five years the financial markets have experienced significant headwinds driven by a perfect storm of regulation, technology and economic reality.
There has been huge growth in the electronification of markets around the world. Regulation has seen responsibility for risk and best execution shift to the buy-side. We are seeing growth in demand for the automation of risk and compliance processes. And financial institutions now have more appetite for the efficiencies of managed services and cloud-based delivery.
At the same time, data volumes have exploded, as have the number of sources, with regulation such as MIFID II requiring more venues and venue-like activities to publish their data. Thomson Reuters now collects and processes more data in a day than we did in a month five years ago.
“We crossed an interesting Rubicon in June 2015 where we found that we’ve got more customers who are machines than are humans..… which doesn’t mean that the terminal on the desktop’s not important but it clearly is a sign of things to come.” – David Craig
More and more of this data is unstructured, and it has become impossible for humans to interpret. Really only machines can cope with the volumes and this is driving demand for data visualization, innovation in big data techniques and automated analysis that help market participants pinpoint signals in the noise. As David notes in the Financial Times discussion, Thomson Reuters “crossed an interesting Rubicon in June 2015 where we found that we’ve got more customers who are machines than are humans..…which doesn’t mean that the terminal on the desktop’s not important but it clearly is a sign of things to come.”
Challenging market conditions mean technology adoption and consumption is changing – there is more idea sharing through fintech accelerators, sandboxes and consortiums. More interest in partnerships and collaboration. More demand for open technologies and platforms that offer the choice and flexibility of plug and play functionality that we take for granted in our personal lives. The financial desktop will not go away as an important interface for human market participants but, as we see convergence between human and machine worlds, it needs to be an open and flexible platform that can embrace this revolution.
Thomson Reuters own open platform strategy aims to nurture this spirit of cross-industry collaboration by supporting an ecosystem of services, customers and partners and breaking down traditional barriers to innovation, communication and market efficiency.
Watch the Financial Times interview in full here: