PARTNER CONTENT
Q&A with Jarrett Sydell, Head of Product, and Caleb Van Voorhis, Product Manager at Neovest, Inc, a wholly owned subsidiary of JPMorgan Chase.
HW: How do you define an open platform in the context of investment management technologies?
CVV: An open platform is one that seamlessly integrates data and content, as well as API access to information and services in a framework that is secure and stable. However, it’s not just about technology; it’s also about the business model and openness to collaboration.
At Neovest, we’ve facilitated various integrations, allowing clients to leverage both our front-end technology and APIs.
We have found that many firms that are looking to customize technology agree with our approach which is: ‘Let us focus on the core items and free them up to develop the technology that sets their firm apart.’
HW: In what ways can an open platform improve user experience for clients?
CVV: It reduces the time spent switching between systems and more reliably and efficiently transfers data, i.e., programmatically instead of manually. This approach also enables custom integrations and allows the firm’s internal tech to shine, ultimately enhancing the trader’s experience.
HW: In what ways can an open platform foster innovation and collaboration among third-party service providers?
JS: Adopting an API-first strategy with open platforms enables seamless data integration and fosters collaboration across firms. This shift in mindset encourages cross-firm innovations, reduces client costs, and supports the development of technology integral to investment strategies.
HW: How can open platforms facilitate better data sharing and analytics for Neovest users, and what benefits does this bring?
JS: Let’s illustrate this with an example. If a client is leveraging a third-party order management system (OMS) that includes the ability to tag their investment strategies, an open ecosystem can significantly enhance efficiency. Portfolio managers can systematically send the strategies they create in their third-party OMS to the Neovest execution management system (EMS). Traders can then use these strategies to update their orders and tickets within the EMS. Without an open platform, users would need to manage strategies in both systems or manually tag orders after execution which can be time consuming and inefficient. Neovest has also integrated with many clients’ internal and third-party systems for position marking and short locate inventory, ultimately saving traders time.
HW: How do open platforms allow users to manage their overall execution costs?
CVV: As more firms integrate and automate their processes, they will achieve greater workflow efficiencies, potentially leading to reduced internal costs. Also, increased flexibility on order routing can provide firms with better control over their execution costs, such as through internal crossing.
HW: What future trends can we expect in the development of open platforms, and how might they reshape the trading landscape?
JS: The shift towards open platforms will open the door to new innovations and increased efficiencies for our clients. This transition will free up time for trading desks, enabling them to deliver greater value to portfolio managers by assisting in other areas including research and portfolio construction.
HW: What examples of successful open trading platforms exist, and what lessons can be learned from their implementation and user adoption?
JS: A few pioneers have introduced software and frameworks that enable different applications to exchange data through a shared messaging layer, with varying degrees of success. However, many firms are now looking for systems that eliminate the overhead of additional software, as their primary focus is on integrating their internal data. Neovest has developed a solution that facilitates seamless integration by focusing on data integration and trading workflows.
For more information on Neovest, please visit www.neovest.com
Jarrett Sydell, Head of Product, Neovest Inc
Caleb Van Voorhis, Product Manager, Neovest, Inc
