For many years, brokers, traders, banks, and other financial industry companies would buy trading turrets for the fast-paced management of numerous call lines. Turret hardware was essential to fast and secure connections, call prioritization, rapid line switching, and other trader capabilities. On trading floors, brokers, traders, and other professionals were essentially tethered to turrets to carry out trades and other operations. But now, turret as a service solution, also known as hosted trader voice platforms, is changing all that. One major reason why: the cost benefits.
A hosted trader platform takes the capabilities of a hardware-based trading turret system and maintains them digitally. Call visualization and prioritization, recording and auditing, line-switching, intercoms, and other dealer board features are hosted on an application, which is accessed through a subscription service or other arrangement with a dedicated provider.
Voice turrets can be accessed through a desktop, laptop, smartphone, and other connected devices. Because of this functionality, a cloud-hosted trader voice platform can be used as a supplement or an alternative to a hardware-rooted trading turret. As more companies become aware of this solution, they are transitioning towards a turret as a service rather than another piece of equipment. There are many practical cost benefits that result from this change.
Disaster Recovery And Site Maintenance Costs
With traditional trading turrets, disaster recovery is a requirement for additional storage and protection of a company’s IT infrastructure. Disaster recovery sites serve as a backup resource in event of a major disaster, breach, or other major incidents that would otherwise compromise a company’s operations. They can be internal and maintained on-site by the company or set up as an external site with dedicated maintenance and service. The cost of either type of disaster recovery service will vary based on many factors, but they can be significant.
When voice trading is moved to the cloud, a dedicated disaster recovery site is no longer needed to ensure that data is protected and operations can continue. All trading capabilities and data can be accessed through the trading turret application and the users are not tethered to a specific piece of hardware. All data is still thoroughly maintained on cloud servers, where it’s secured, but also fully accessible when needed.
Reduced Equipment Footprint
On average, trading turret hardware carries an initial cost of $10,000, which increases by a few thousand dollars for every private line needed per trader. Then there is the cost of service and maintenance for all required equipment. This means that equipment costs for maintaining a traditional trading turret will easily amount to a cost of hundreds of thousands to tens of millions based on the size of the company. Since hosted trader platforms do not require turret hardware and will instead provide all features through almost any connected device, equipment costs are much lower.
Scalability And Potential For Growth
Removing the hardware from the features of a trading turret means that companies have more options for adding and modifying connections. The ability to adjust to growth and facility changes is that much more flexible. Since voice turrets are application-based, a trading floor can be structured as any office environment. This also accommodates remote working arrangements, which have become more of a necessity across all types of industries.
The switch from more rigid, hardware-limited systems to a turret as a service approach not only amounts to numerous monetary advantages, it enables companies to stay current and competitive in a rapidly changing industry.