The competition for buy-side order flow is more challenging than ever, and in a crowded market with the outlook uncertain for domestic and global equities, sell-side brokers have to work hard to win new customers and mandates. Even if brokers can convince potential asset managers of the quality of their execution and trading services, physical onboarding can be the biggest hurdle to new customer business.
With the onus on the broker to facilitate the onboarding process, they are often faced with managing different message protocols or various versions of FIX as the industry lacks standardisation. Managing and maintaining different message types is expensive and complex. Physical connectivity is also costly, and lead times for telco connectivity can sour a new client relationship before it has begun. With thin margins in equity trading and rising compliance costs, firms may have to question the economics of trading with certain clients.
Life is not necessarily easier for asset managers. Increasingly, firms need to access multiple brokers to ensure they are achieving execution benchmarks and holding their brokers to account. They may also view some sell-side firms as having better expertise in certain market sectors or access to offshore liquidity. Having the flexibility to connect to a broad choice of brokers and trading platforms to facilitate their execution strategy and investment mandate is essential.
Rapid Addition is solving these challenges for the South African market – RA NET is the electronic trading network that connects the market and enables electronic order flow throughout the financial ecosystem. Designed for speed, security, and resilience our protocol and asset class agnostic order routing network give customers optimal performance and flexibility.
Whether enabling fast and cost-effective client onboarding, reducing the cost and complexity of managing order flow, accessing the broadest set of liquidity providers, or looking for a dynamic ecosystem to market your trading services, then RA Net is the solution. Built specifically for South Africa but with access to a global network of financial service providers, RA Net is connecting markets.