Hexaview Technologies

Capital Markets, the Marketplace that Makes Our World Go ‘Round

For most, if you were to ask what the financial markets are, they would either say the stock market or maybe the bond market. What many people fail to realize is there’s a more robust and deep marketplace, which is the capital markets space. 

Capital markets are where financial institutions can go out and purchase products only available to them. These can include MBS, CMO, SBA, and so on. These tend to trade in the tens or hundreds of millions. Institutions can also purchase high dollar bonds or treasuries through the capital markets. The issue is without the proper technology or regulatory approval, access to these markets can prove difficult.

Regardless, it is important to understand these markets as this is where substantial money flows in and out of. More importantly, understanding technology too will help you see where these markets are headed.

Technology

First, the technology between capital market trading firms is expanding rapidly. The speed at which deals and trades are processed is important. When billions are being flowed back and forth, ensuring the money lands efficiently can save everyone money.

Technology can help with data aggregation and management. When looking at various capital market software products, having the right data is paramount. Some institutions want to see liquidity, while others want to see buyers and sellers. For analysis, people want to see what the underlying products are and if they are worthy of investment.

Security is important as well. These products can hold millions or billions of dollars, and ensuring sufficient security is critical. Blockchain and ledger technology is at the forefront of finance, but no matter the end result, transactions, and money movement must be secure.

Customer Service

As mentioned, the speed at which these trades are executed is critical for sustainable business. Some markets move slowly, others quickly. Getting the best price or most up to date bid/ask spread requires speed. The difference of a few pennies can mean hundreds or thousands of dollars. With inefficient technology, odds are you will struggle to retain and acquire new clients.

The high-level analysis is also important. For example, if you have a client looking for an MBS product made up of 30-year fixed mortgages, you need to pull that data quickly, having information ready. While some products are a bit more complex, ensuring you have access to information is a must.

There could be a large multi-volume book written on capital markets, but these topics are important. Whether you are purchasing or selling, knowing what goes on behind the curtain can help bring better value to all involved. Technology in this space is always changing, and what we use now may be obsolete a year from now. 

If your firm is looking for capital market software solutions and you need a customized approach, let Hexaview help you out. By working with your current technological infrastructure, we can help implement an easy to use platform. Take a look at what we have to offer and reach out with any questions, we’d love to help your firm take the next step.

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