Caplin Systems’ launch today of Caplin Direct, a hosted, managed single-dealer platform for banks in the FX market, aims to make state-of-the-art SDP capabilities to financial institutions that may not have the budget or technical resources to implement a deployed solution.
According to CEO Paul Caplin, the initiative represents the third generation of SDP development, following earlier phases that saw Tier 1 banks build their own systems, and then Tier 2 players opt for off-the-shelf deployed solutions offered by the likes of Caplin Systems.
The service includes optional pre-trade content such as news and charting, and can be customized for specific user segments such as institutional, corporate, retail and internal sales desks.
In essence, Caplin Direct transforms a traditionally high capital expenditure activity to an operational expenditure model, by offer a full function SDP platform as a service. Moreover, its hosted model means that the system can be deployed in a matter of weeks, rather than the months of implementation required for on-site development.
The new service connects quickly and easily to existing e-trading systems, whether vendor-hosted or deployed. To speed the process still further, Caplin offers standard adapters for many popular trading systems.
Once connected to a bank’s trading system, Caplin Direct provides an ‘out of the box’ SDP, while providing unlimited scope for branding, customisation and extension with unique features and workflows. The platform is based on the same underlying Caplin Platform and Caplin Trader technology used by Tier 1 banks, like Citi whose award-winning Velocity platform uses Caplin technology.
CEO Caplin says the company is in discussions with regional banks around the world, and expects to sign the first client soon. He says the Caplin Direct platform will expand beyond its initial FX market coverage into other asset classes in the coming months, among them equities and futures.