Patsystems to renegotiate connectivity contracts

The move could prove the first of many in an industry seemingly poised for a substantial shake-up as vendors offering electronic exchange connectivity look to generate revenues from existing relationships. It is no secret that a number of ISVs that 'bought' market share by offering discounted rates are facing difficulties realising profits.

Patsystems is also reappraising 20 third-party relationships with the view to terminating those that are a drain on its resources.

"Certain customers appear to have been offered use of patsystems’ products at a rate that created unfair competitive advantage over other patsystems’ customers or prospects," the company said. The firm added that in many cases such arrangements had been agreed by previous patsystems directors without the knowledge or approval of the full board.

In a recent interview with Risk magazine, Nick Garrow, Patsystems’ global head of sales, aired his thoughts on the future rationalisation of vendors in the industry: "I think the big trend that we’ll see this year will be consolidation," said Garrow. "I mean this from a number of angles: exchanges will consolidate through merger activity and the exchange technology will converge with other mainstream trading and risk systems."

Patsystems has allocated £1.1 million to upgrade its current technology platform, with a view to increasing sales prospects through a modified product range.

"ISVs will have to focus from a technology and delivery perspective on what area of the market they are after. I believe that there is only space for about five or six ISVs in the connectivity market," said Garrow.

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Next-generation technologies and the future of trading

At a webinar in association with capital markets technology provider Numerix, panellists discuss the potential for increased adoption of the public cloud to boost investment performance, its impact on risk management and overcoming barriers to…

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here