ION, the trading, analytics, treasury, and risk management solutions vendor, has launched XTP Spark, a trade processing solution for cleared derivatives. Using the same technology as ION’s flagship XTP solution, XTP Spark is aimed squarely at smaller firms such as regional banks and brokers, commodity trading firms and niche clearers who require similar back-office functionality, but in a quick to deploy, lower cost option.
The new ‘out-of-the-box’ product has been launched to address the often costly and complex deployment challenges when modernising and automating back-office systems. By offering the same advanced back-office functionality that was previously only available to larger clearing firms with the budget and resources for major investment, XTP Spark aims to lower the barriers to entry for new market entrants and for existing firms to modernise their post trade infrastructure.
“The functionality isn’t really any lighter,” says Francesco Margini, Chief Product Officer for Cleared Derivatives at ION Markets. “What we’ve done with XTP Spark is pre-define the functional scope based on our experience and knowledge of what these smaller institutions need in order to run their operations. It offers a well-defined, functional set that is truly out of the box, but that doesn’t mean it’s limited. It’s still comprehensive, matching their requirements. By codifying and parameterising everything, we’ve made it much easier for both ourselves and our clients because we only need to deploy the software and populate the system with data before the client then tests it and rolls it out.”
The fact that XTP Spark is fully hosted and managed by ION also reduces complexity, says Margini. “Offering it as a hosted solution limits the effort for the firms because they don’t have to deploy their own infrastructure. Clients don’t have to spend time from a technology perspective installing and configuring components. Also, we have established physical connectivity to global exchanges and clearing houses, so we take care of all of that, which is a significant reduction in overhead for our clients.”
The product is now being rolled out globally, says Margini. “The need is really becoming apparent across regional banks, the FCM community, commodity trading firms and smaller clearing firms with a specific product focus, whether that’s in Europe, US or Asia.”
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