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Wall Street Startup Direct Match: We Will Not Be Able to Execute Our Vision Any Time Soon – Business Insider

Full Article: Business Insider

My greatest error was that I was so committed to altering the competitive landscape in the front-office that I did not adequately structure the firm to simultaneously attack the uncompetitive landscape in the back-office. 

Comments
  • Goose
    GooseAugust 29, 2016"I am really curious about the clearing side of this equation. Why are there no other tier one netting FICC member's who would handle this kind of business? I mean, being a clearing member you would want more business to clear, correct? Is it just the controversial business model, or economics, or intraday risk? Why doesn't FICC accept locked in trades like NSCC does, both are DTCC entities so it's not foreign ground. . I hope Mr. Greco does a follow up post explaining…"
  • Mustang
    MustangAugust 26, 2016"I commend DM for their effort. We need more competition and innovators in Fixed Income. My comments are not directed at them. Instead, it is directed at the screwed up market that we operate in. The largest issues in Fixed Income ATS proliferation strikes me as the following: Differentiation: there's not much differentiation between every single platform. Differences in protocol just aren't different nor defensible. If "ATS A" creates a protocol that works, then there…"
  • Sundown
    SundownAugust 26, 2016"I would like to preface this note by saying that I commend Mr. Greco for his efforts and willingness to find a solution to some of the liquidity issues in the U.S. Treasury market. I urge you to read Kevin McPartland of Greenwich Associates recent blogpost “Failure for the sake of Success”. It provides proper context for this discussion. Failure is never final, and often leads to needed innovation, however that is hardly a consolation to those who invested time and mo…"
  • Wolfman
    WolfmanAugust 25, 2016"New ideas need to follow old rules and answer some simple questions, and I certainly haven't listed them all. Feel free to add more in your replies. 1. Does it solve a problem? 2. How many people have this problem? 3. How many other companies are trying to solve this problem? 4. Is my solution unique? 5. Is my solution practical with available talent and technologies? 6. What does the entire solution look like and do I have dependencies on other which I cannot control…"

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4 Comments on "Wall Street Startup Direct Match: We Will Not Be Able to Execute Our Vision Any Time Soon – Business Insider"

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Wolfman
Member
New ideas need to follow old rules and answer some simple questions, and I certainly haven’t listed them all. Feel free to add more in your replies. 1. Does it solve a problem? 2. How many people have this problem? 3. How many other companies are trying to solve this problem? 4. Is my solution unique? 5. Is my solution practical with available talent and technologies? 6. What does the entire solution look like and do I have dependencies on other which I cannot control? 7. How much will it cost? 8. How long will it take? 9. How much… Read more »
Sundown
Member
I would like to preface this note by saying that I commend Mr. Greco for his efforts and willingness to find a solution to some of the liquidity issues in the U.S. Treasury market. I urge you to read Kevin McPartland of Greenwich Associates recent blogpost “Failure for the sake of Success”. It provides proper context for this discussion. Failure is never final, and often leads to needed innovation, however that is hardly a consolation to those who invested time and money In Direct Match. We should be thankful that there are individuals like Mr. Greco who are willing to… Read more »
Mustang
Member
I commend DM for their effort. We need more competition and innovators in Fixed Income. My comments are not directed at them. Instead, it is directed at the screwed up market that we operate in. The largest issues in Fixed Income ATS proliferation strikes me as the following: Differentiation: there’s not much differentiation between every single platform. Differences in protocol just aren’t different nor defensible. If “ATS A” creates a protocol that works, then there is zero barrier for “ATS B” to copy it. Yep, ZERO. It’s just technology and it’s not that hard to build. Look at all the… Read more »
Goose
Member
I am really curious about the clearing side of this equation. Why are there no other tier one netting FICC member’s who would handle this kind of business? I mean, being a clearing member you would want more business to clear, correct? Is it just the controversial business model, or economics, or intraday risk? Why doesn’t FICC accept locked in trades like NSCC does, both are DTCC entities so it’s not foreign ground. . I hope Mr. Greco does a follow up post explaining why there was only one game in town, and why/how they flaked at the goal line.… Read more »
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