Boca Raton, FL (JLN) - Jim Downs, CEO of Connamara Technologies, a provider of exchange infrastructure technology, emphasizes the importance of regulatory compliance for clients during an interview at the FIA's International Futures Industry Conference in Boca Raton, FL.
Connamara's customer base consists of 40% regulated entities in derivatives and equities markets, with the remaining clients ranging from crypto infrastructures in the US to an equity platform in Brazil, Downs said. Downs highlighted that even unregulated clients aim to operate as if they were regulated, maintaining rulebooks and prioritizing brand reputation, he said.
When prioritizing customer requests, Connamara places utmost importance on features and functionality that prevent clients from facing regulatory hurdles, Downs said. Ensuring clients can obtain regulatory approvals and go into production without technological barriers is crucial, he said. Additionally, Connamara prioritizes requests that impact or improve clients' business lines and customer reach, Downs said.
"If they're not ready to go into production when that approval comes through, then we just want to make sure they are," he said. "We want to make sure it's not the technology preventing them from getting regulatory approval," Downs said.
To demonstrate their commitment to regulatory compliance, Connamara has obtained the SOC 2 Type 2 certification (System and Organization Controls), which attests to the company's adherence to proper controls, governance, and security policies and procedures, he said. This certification allows regulated clients to avoid explaining their vendor's policies to regulators, as Connamara can provide the audit report, Downs said.
Downs said that a crypto infrastructure firm is likely running the highest volume through Connamara's platform, while an exchange in Brazil is using their technology for small-cap equity auctions before companies transition to larger exchanges. Connamara's platform supports various market mechanisms beyond central limit order books, including auctions and RFQs, and is adding bilateral matching, he said.
While Connamara provides robust transactional management and matching capabilities, Downs acknowledged that trading front-ends are the "secret sauce" for exchanges, tailored to their specific customer needs. Connamara exposes APIs for clearing, trade practice surveillance, and integration with third-party providers in these areas.
"Those are businesses in and of themselves, just like trading front-ends. That's a business, right?" he said. "If we want to be in that business, we'll be in that business. We're in the exchange platform business."
QUESTIONS
What kind of customers does Connamara Technologies have?
What exchange is running the most volume through your platform?
Does your trading platform include a front-end?
00:00:00 - Introduction and Company Overview
00:00:38 - Customer Profile and Regulatory Compliance
00:01:46 - Prioritization of Customer Requests
00:03:12 - Differentiating Factors and Compliance
00:04:21 - Volume and Variety of Exchanges
00:05:04 - Market Mechanisms and Future Plans
00:06:26 - Trading Platform and User Interface