New software enables direct share trading for retail clients

London-listed Misys and Hungarian-based Dorsum Investment Software have partnered to deliver a solution designed to allow big banks to offer online trading to their retail customers. The software will enable banks to offer customers direct market access [DMA] removing the need for an account with an online broker.

Just a day after Ally Financial demonstrated the interest of major financial institutions in the retail space by acquiring TradeKing, we are seeing another product development which could reshape the structure of the retail trading market.

Two financial software development companies from Europe have partnered up to deliver a solution which could enable big banks to grant their retail clientele access to Online Trading Online Trading Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Read this Term. London headquartered Misys has partnered up with Hungarian company Dorsum Investment Software to implement a facilitating layer of software which could spare a lot of inconvenience for retail traders.

Instead of looking for an online brokerage that grants them access to a given market, some banks could start offering a new service to their retail clients that grants them direct access to certain markets.

Fusing Online Banking with Online Trading

The partnership between the companies will integrate the online brokerage functionality developed by Dorsum into the FusionBanking Essence solution developed by Misys. The new solution is called FusionBanking Essence Online Investments and it enables banks to run a full-scale online retail brokerage with retail clients being granted access from their existing banking accounts.

The Retail Channels Director at Misys, Alex Bray, commented on the announcement: “As digital banking has become ubiquitous, online investment capabilities are the next big differentiator for banks. By integrating Dorsum’s online brokerage tools into FusionBanking Essence, we can keep our clients one step ahead and help them to meet their clients’ expectations.”

needs have shifted well beyond simple online banking as clients seek simpler access to their investment portfolio

The Misys FusionBanking Essence Online Investments product grants access to a wide range of markets including not only Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term-traded products but also OTC assets like equities, bonds and mutual funds.

The CEO at Dorsum, Róbert Kő, added: “The increasing popularity of digital tools requires banks to provide comprehensive digital solutions for their customers. Customers’ needs have shifted well beyond simple online banking as they seek simpler access to their investment portfolio. Our solutions are specifically designed for this market and will further extend the Misys portfolio of digital banking services.”

The end product suite is MiFID compliant as it is designed to assess the risk profile of every client before granting access to a bank’s brokerage product.

Finance Magnates has reached out to Misys for more information about the specific markets to which clients will get access and will update the article once the information becomes available.