How can AI-driven tools redefine success in modern trading?
Join us for a special alfresco edition of FinTech Focus TV, recorded in the vibrant heart of New York City (rooftop at our office), where Toby Babb, CEO of Harrington Starr, reconnects with Daniel Shepherd, CEO of BTON, a transformative AI-driven technology tool for trading desks. This episode marks Daniel’s second appearance on the show and highlights the journey and evolution of BTON, showcasing its role as a game-changer in trading optimization and AI-driven solutions for capital markets.
Key Discussion Points:
The Purpose and Innovation of BTON:
Daniel shares how BTON serves as an advanced front-office technology solution, designed to optimize trading workflows and enhance decision-making on the trading floor. Drawing a parallel to familiar AI recommendation systems seen in consumer technology, such as personalized content suggestions on streaming platforms and mobile apps, Daniel emphasizes that BTON’s application is tailored for equity trading. The platform acts as a broker and trader assistance tool, utilizing transaction cost analysis (TCA) and collaborative data to suggest the most efficient broker routing for trades.
Transition to API-Based Solutions:
Highlighting a major shift since his last appearance, Daniel explains how BTON has transitioned to being a purely API-based solution. This pivot allows for seamless integration with existing trading infrastructure, ensuring that order flows remain undisturbed while avoiding the need for extensive software installations. By functioning like an app within widely used order management systems (OMS) and execution management systems (EMS), BTON facilitates easy adoption and enhances user convenience. This adaptability is crucial in today’s fast-paced trading environment, where efficiency and flexibility are paramount.
The Power of Collaborative Data:
A significant part of the conversation delves into the concept of collaborative data. Daniel discusses how BTON leverages collective intelligence by aggregating data in a way that benefits all users while maintaining strict data security and privacy. This shared intelligence ensures that even smaller firms can access statistically relevant insights without compromising proprietary information. The importance of this approach lies in its ability to provide more accurate and actionable data, supporting better decision-making and ultimately yielding better outcomes for traders and asset managers.
Insights on the U.S. Market
Opportunities in America:
Daniel elaborates on his increased presence in the U.S., particularly in New York City, noting the region's energetic and opportunity-rich atmosphere. The U.S. market is renowned for its openness to innovative technologies and its relentless pursuit of gaining a competitive edge. The episode underscores how firms in the U.S., especially in financial hubs like Manhattan, are keen to integrate new tech solutions that can enhance their trading capabilities. With over 3,000 asset managers located in Manhattan alone, the demand for advanced tools that offer real-time insights and optimization is immense.
AI as a Strategic Necessity:
The discussion also touches on the essential role AI now plays in the financial sector. Toby and Daniel reflect on recent industry conferences like FIX, where AI and its practical applications were prominent topics. Daniel notes that an effective AI strategy is no longer optional but a necessity for firms that want to remain competitive in trading and financial technology. AI’s potential for cost savings, productivity gains, and improved decision-making has made it a cornerstone of modern fintech solutions. The conversation highlights that while the concept of implementing AI may seem daunting to some, tools like BTON provide an accessible entry point to adopting this transformative technology.
Evolution of Tech and Business Strategy
Staying Ahead with Adaptation:
Adaptation is a recurring theme in the episode, with Daniel emphasizing how critical it is for tech firms to pivot and evolve. He discusses how BTON’s journey reflects the broader trend in FinTech where companies must stay nimble to meet shifting market demands and technological advancements. This mindset has enabled BTON to scale effectively and remain competitive, even as the landscape of financial services continues to change at a rapid pace.
Challenges and Character Building in FinTech:
Daniel opens up about the challenges that come with growing a tech company, especially one focused on capital markets. From launching just before the onset of COVID-19 to scaling operations with a small but highly skilled team, BTON has navigated significant hurdles. The episode underscores the importance of having a team that not only understands technology but also possesses deep industry knowledge. Daniel proudly mentions team members like Emmett Cawley, a former physicist and head of data science, and Adam Mingos, who led electronic trading at Fidelity Investments for a decade. These experts have contributed to BTON’s robust and scalable technology, which maintains third-party neutrality—a crucial aspect for trust in the financial industry.
The Role of Staffing and Headhunting in FinTech:
As the conversation unfolds, Toby Babb and Daniel Shepherd touch on the critical importance of having the right talent to drive innovation and sustain growth in fintech firms like BTON. In an industry characterized by rapid technological change and the constant demand for specialized expertise, finding and retaining top-tier professionals is essential. Toby, leveraging his deep experience as the CEO of Harrington Starr, a leading fintech staffing and headhunting agency, discusses how the recruitment landscape has evolved to meet these demands.
Daniel shares insights into how BTON’s lean but highly skilled team has been a cornerstone of its success. By maintaining a compact team of experts in data science, electronic trading, and technology, BTON has demonstrated how strategic hiring can lead to exceptional agility and scalability. The discussion highlights the competitive edge that comes from assembling a team that not only understands technology but has deep-rooted industry knowledge. This combination is essential for developing solutions that meet the complex needs of trading desks and capital markets.
Recruiting the Right Talent for FinTech Growth:
The episode emphasizes that as fintech firms continue to adopt AI and machine learning, the demand for specialists in these areas is growing. The conversation reflects on how firms must balance technological prowess with business acumen, ensuring that their teams can adapt and innovate in a constantly evolving market. Toby points out that headhunting and specialized recruitment play a crucial role in helping businesses secure the expertise needed to leverage cutting-edge technologies like BTON’s.
In this highly competitive market, companies that prioritize their FinTech recruitment strategies and work with specialized FinTech staffing agencies can better position themselves to attract and retain professionals who will drive their AI initiatives, data analysis, and digital transformation efforts forward. Daniel also notes that smaller, nimble teams often attract individuals looking for an environment where they can make meaningful contributions, shaping the future of fintech and leaving a legacy in the industry.
This insight into staffing and headhunting adds an extra layer to the episode, showcasing how firms can achieve success not just through technology but through strategic talent acquisition and team development.
Embracing FinTech Collaboration
A Collaborative Industry:
Toby and Daniel explore the shift from a traditionally insular approach in the finance industry to one that embraces collaboration. Partnering with both larger financial institutions and smaller fintech startups has proven beneficial for firms looking to integrate cutting-edge solutions without disrupting their operations. This collaborative ecosystem is essential for fostering innovation and ensuring that firms can keep pace with rapid changes in financial technology.
Daniel notes that BTON partners with a range of companies, from well-established tech firms to emerging startups, to broaden its reach and enhance its service offerings. This approach not only boosts the capabilities of BTON but also allows other firms to leverage its AI-driven solutions to stay competitive. Toby and Daniel both agree that partnerships and shared resources are key to building a more resilient and advanced financial ecosystem.
Practical Applications and Future Outlook
Ease of Integration and Use:
One of the standout features of BTON discussed in the episode is its simplicity and ease of integration. The API-based nature of BTON ensures that users can add it to their existing setups without undergoing lengthy training processes. This feature has been well-received by clients, who appreciate the ability to seamlessly integrate new technology into their daily workflows. In an industry where time is money, having a tool that’s easy to use and doesn’t require extensive onboarding can make a significant difference.
Growth and Future Plans:
Daniel shares BTON’s ambitious plans for the future, which include expanding its partnerships within the U.S. market. He highlights key regions such as Boston, Florida, Texas, and the Midwest, where FinTech innovation continues to flourish. The episode emphasizes that while BTON isn’t aiming to become a massive corporation overnight, its strategy of steady, partnership-driven growth positions it well for sustained success. Daniel’s excitement about the opportunities in the U.S. is palpable, noting that the scale and openness of the market create an ideal environment for FinTech solutions that offer real value.
This episode of FinTech Focus TV is a must-listen for:
- Equities and ETF traders who are looking for AI-assisted trading tools that enhance decision-making and efficiency.
- Asset managers, hedge funds, and buy-side institutions that require cutting-edge solutions for trade optimization and best execution.
- FinTech professionals and technology enthusiasts interested in the latest AI and data-driven advancements impacting the U.S. financial market.
- Stakeholders in New York’s FinTech ecosystem seeking insights into how collaborative approaches and innovative technologies are shaping the future of capital markets.
- IT and data specialists focusing on AI integration within financial services and looking for practical examples of technology improving trading outcomes.
For those passionate about the convergence of quantitative finance, AI, and technology-driven trading solutions, this episode provides an insightful look at how BTON and similar companies are transforming the way trading desks operate. Daniel’s perspective as a leader with hands-on experience in developing tech for the finance industry offers valuable lessons for anyone navigating the complexities of fintech and capital markets.
Stay connected for more thought-provoking conversations on FinTech Focus TV with Toby Babb, where we continue to spotlight leaders and innovators who are shaping the future of global finance. Recorded from our New York office, these episodes offer a front-row seat to the changing landscape of financial technology, highlighting key trends and practical solutions that keep firms ahead of the competition.
