Buyside moving to tap more trading venues
We're witnessing an explosion in trading options these days that has led to growing concerns on the buyside about fragmentation and the thought that perhaps good trading opportunities are being missed. Fidelity Capital Market Services, the trading arm of the fund giant, has moved to provide broader liquidity sources to clients. According to Financial News Online, it has added 13 new partners to its platform. Clients now can access 17 third-party venues plus the firm's brokerage clients. So this is one way to effect a kind of consolidation. In effect, the firm has become a service aggregator. My suspicion is that the real value will be in the interface software that Fidelity can offer its clients. Lots of room for competition. A killer app could be born.