Equity Trading Infrastructure: How Platforms Enable Global Market Access for Institutions

Key Highlights

• Equity trading infrastructure is the backbone that empowers financial institutions seeking to enter the international trading environment.
• Equity trading infrastructure comprises a robust network of various elements that are essential for cross-border trading. ViewTrade’s technology stack and trading solutions are designed to route orders efficiently enabling institutions, FinTechs, and brokers to offer their clients seamless access to international markets.

Equity trading infrastructure has changed the way the world trades. As institutional trading platforms across the world adopt digital means to optimize their trading strategies, there is a growing need for a stable equity trading infrastructure that enables global market access. Equity trading infrastructure bridges technology and regulations — integration, connectivity, execution, and compliance to make cross-border trading frictionless. In this article, explore how institutional trading platforms achieve this feat with the help of equity trading infrastructure, how a typical trading infrastructure ecosystem works and what the way ahead looks like.

What Is Equity Trading Infrastructure?

Equity trading infrastructure facilitates access to global markets for traditional financial institutions. It consists of hardware, software, data connectivity, and compliance systems to facilitate high speed, robust and reliable trading operations. Equity trading infrastructure is the invisible backbone that makes cross-border investing possible.

Components of Modern Trading Infrastructure

Financial Exchanges:

Electronic exchanges form the core of the trading infrastructure. They enable real-time trading for all asset types, including equities and derivatives, making an indispensable part of the system.

Data Feed & Market Data Management:

Institutions rely on accurate, real-time data feed, market depth, and transaction volumes. From order initiation to execution, all delivered within milliseconds. A robust data management ensures meticulousness, timely delivery, and does not leave any gap for human errors.

Order Management Systems & Execution Management System:

These management systems help institutions streamline the entire lifecycle of different types of trade orders and manage all types of portfolios with the right pre-trade risk controls, automations, and strategies in-place while ensuring regulatory compliance.

Direct Market Access:

DMA allows financial institutions to bypass intermediaries to execute trades directly on the financial exchange. This enhances control over trade execution and risk management.

Connectivity & Network Infrastructure:

A low-latency network is of prime importance in today’s market which is time sensitive and highly competitive. Modern equity trading infrastructure provides just that. With facilitators like ViewTrade hosting optimized trading APIs that facilitate seamless cross-border trading. A high-performing network infrastructure is non-negotiable.

How Platforms Enable Global Market Access for Institutions

Direct Market Access & Multi Exchange Connectivity

ViewTrade provides direct market access by establishing connectivity with multiple financial exchanges and alternative trading venues, while ensuring compliance with regulatory requirements. ViewTrade facilitates cross-border equity trading by connecting trading infrastructure with multiple financial exchanges across the globe through trading APIs and FIX messaging solutions. This allows institutions across the world to diversify their portfolio internationally and respond to market movements in real-time.

Ultra-Low Latency Infrastructure

High-speed connectivity is non-negotiable in today’s highly competitive and fast-paced market environments. ViewTrade’s ultra-low latency networks are co-located with exchange servers to route orders within milliseconds. By partnering with global fiber networks and using advanced switching technologies, ViewTrade guarantees seamless order routing and execution in real-time.

Comprehensive Market Data and Analytics

Ensuring that data is both consistent and accessible is a key challenge in trading environments. ViewTrade’s analytics offer a comprehensive dashboard of the relevant market data with insights on signals generated through AI-powered algorithms to help institutions identify trading opportunities and assess market conditions instantly.

Robust Order Execution and Management

Institutions that process high frequency trading (HFT) and multi-asset trading require a comprehensive, flawless order processing system. ViewTrade’s offers robust, easy-to-use APIs, SDKs and a technology stack that support the full investment lifecycle. ViewTrade integrates powerful OMS and EMS that provide seamless order routing, execution algorithms, and smart order routing (SOR) to get the best prices across multiple venues.

Scalable, Secure Cloud and Hybrid Architecture

ViewTrade’s infrastructure utilizes a cloud-native approach with hybrid capabilities, allowing for flexible scaling and high availability. Managed services and white-glove support maintain server uptime, software updates, and network security.

For any trading institution looking to enter the international market, it is challenging to carry out successful trading due to geographical and regulatory constraints. ViewTrade’s trading solutions are designed to facilitate cross-border trading while complying with international trading regulations.

Major Challenges While Establishing Equity Trading Infrastructure

Establishing equity trading infrastructure can be challenging due to the involvement of multiple elements. From setting up the basic framework to accommodating the hardware and software components to ensuring regulatory compliance – it can be overwhelming and challenging if the approach is not well planned.

Regulatory Complexity

While trading markets around the world generally operate on similar principles, regulatory frameworks vary by region. Therefore, it’s important to choose a partner that provides trading software and hardware that are compliant with local regulations. Unlike many others, ViewTrade complies with all major cross–border market regulations.

Connectivity & Market Integration

Institutions need seamless, direct connectivity to global markets with real-time updates on market events. This calls for robust trading APIs and low-latency infrastructure. Integrating domestic and international seamlessly can be challenging as there are operational barriers like different settlement cycles, market hours, and asset classes.

Cybersecurity

Equity trading platforms are constant targets for cyber threats including DDoS attacks, intrusion attempts, and data breaches.

Protecting sensitive trade data, client information, and maintaining operational continuity requires cutting-edge cybersecurity systems and policies.

Market Volatility and Operational Resilience

Platforms must be designed to withstand sudden surges in trading volume and extreme market volatility, which can stress systems, disrupt pricing, or cause outages.

Institutions need real-time monitoring, contingency plans, and robust disaster recovery protocols.

Overnight Trading

Overnight Trading comes with its own challenges, including significant operational, clearing, custody, and compliance considerations. ViewTrade hosts a robust infrastructure to facilitate high availability and 24-hour uptime along with automated monitoring and risk controls.

ViewTrade’s Perspective: Democratizing Global Access

In view of all the above points, ViewTrade has been constantly testing, developing and rolling out the necessary equity trading infrastructure elements for over 300+ institutions worldwide. We offer compliant access to 22+ markets with $500 billion annual cross-border flow and scalable infrastructure.

Conclusion

Global equity markets are fragmented and governed by complicated regulatory frameworks. Financial institutions must navigate through compliance, technology that facilitates seamless trading and market volatility among many others to enter cross-border markets. Equity trading infrastructures provide a well-integrated combination of the required hardware and software that comply with all major cross–border market regulations. As trading technology continues to evolve, platforms like ViewTrade remain at the forefront, ensuring global market access is seamless and efficient for institutional clients worldwide.

FAQs

How does ViewTrade facilitate global equity market access?

ViewTrade offers unified APIs, turnkey solutions, and direct connectivity to multiple international exchanges, allowing institutions to execute trades, manage portfolios, and comply with regulations globally.

What products can institutions trade through the ViewTrade platform?

Institutions can access a wide range of instruments including equities, ETFs, options, mutual funds, and fixed income products across leading global markets.

How does ViewTrade handle regulatory compliance for different regions?

ViewTrade incorporates automated compliance for KYC, AML, reporting, and region-specific requirements as part of its core platform, simplifying global regulatory obligations for institutions.

What are the integration options for ViewTrade’s infrastructure?

Institutions can integrate via API endpoints, FIX protocol, SDKs (JavaScript, Java, Golang), web sockets, or traditional file-based methods, enabling seamless flow to internal and external systems.

What are the cybersecurity measures implemented by ViewTrade?

ViewTrade employs industry-standard cybersecurity protocols, continuous monitoring, and regular security updates to protect institutional clients from evolving cyber threats.