UPDATE ON APPLICATION PROGRAMMING INTERFACES or APIs - There is, of course, virtually no end to the degree to which technology can support APIs. However, it does seem that each firm uses APIs only in accord with its actual or perceived needs.
At the 4/30 DTCC FINTECH event, we received insights about digital platforms in the financial services industry. APIs developed by broker-dealers, for example, that interface with such platforms at DTCC can then enable asset management firms (through their APIs) to receive information in real time about securities transactions that have been cleared and settled at the Depository. Several of the various speakers at the DTCC event suggested that the current growth pattern in APIs will continue, and thereby provide extensive opportunities for clients to be more fully serviced by those who are suppliers of data.
We also heard that pricing information via APIs concerning derivative products, for instance, might be made instantly available to a trading desk at a firm where previously the value of this instrument may not have been known until many calls or emails had been sent and returned.
ASSET MANAGERS TECH (AMT) IS A TRADE GROUP THAT FAVORS THE FURTHER DEVELOPMENT OF TECHNOLOGY TO SUPPORT EFFICIENCIES SIMILAR TO THOSE MENTIONED ABOVE. However, we also know that a great deal of educational and analytical work lies ahead on this front from an industry-wide standpoint. Naturally, for example, the integrity of markets must be protected to the extent that any rules or practices need to be changed to accommodate new technology. Accordingly, we look forward to rolling out more AMT member services programs in the months ahead that will focus on delineating the value of APIs and Artificial Intelligence and other similar tech innovations.
IF INTERESTED IN WORKING WITH US, please contact the undersigned at your earliest convenience. Our experience to date is that firms which are using the new technologies want to spread the word to others, as the benefits of technology increase exponentially to the extent that there are more providers and users of newly accessible relevant market-oriented data to assist investors.
Please feel free to reach out to Joe Sack of AMT jsack@assetmanagers.tech or George Marootian, Executive Vice President of Technology at Natixis Investment Managers. Mr. Marootian serves as Chairman of the Q and A Task Force at AMT.
