Financial markets are in a long-term phase of electronification and as a result, many of the world’s largest financial institutions look to new, innovative vendors to provide them with technology and services that will give them an edge. Customers, too, are looking for solutions that bring efficiency, timeliness, and transparency to a range of their own products and services.
As part of a global trading firm engaging in thousands of transactions per day, SGE understands these challenges and has unique breadth and depth of insight to address them. We leverage our colleagues across the firm to better understand technology gaps in the market, make introductions on behalf of our portfolio companies, and provide our companies with differentiated customer feedback.
We frequently collaborate with peer institutions in co-investing and evaluating new technologies and vendors. By actively leveraging the broad SIG ecosystem, we give our portfolio companies unparalleled access to customers, senior managers, board members, and advisors.
Investment themes
- Increasing infrastructure demands: The need for low-latency, high-throughput trading and back office systems continues to grow amid the dramatic rise in quotes, message traffic, and related trade data.
- Rise in cross-asset trading: As more asset managers look to capture alpha by trading across multiple asset classes, the use of derivatives, fixed income, and other structured products continues to increase.
- Fragmented liquidity: Managers need to source liquidity from diverse venues in real time to execute their trade ideas without disrupting the market.
- Greater transparency: Regulators and customers are calling for deeper insight into the behavior and actions of asset managers, necessitating solutions which offer visibility without compromising proprietary strategies.
- Push to exchanges: Part and parcel of this push for transparency is the effort to bring derivatives and other OTC products onto central platforms for trading and clearing.
- Enhancing efficiency: Firms are boosting efficiency by adopting commoditized back-office processing platforms.
- Asset shift: Investors are abandoning actively managed mutual funds in favor of passively managed ETFs and personal stock picks, fueling demand for information resources and advisory services tailored to the retail market.