External Software vendors vs in-house research

cfp928 · December 16th, 2001, 2:34 pm

Hi,THis is probably not the right part of the forum for this question, but anyway. Can someone tell me what are the criteria for a bank to buy off the shelf pricing software versus building its own. For example, ITO33 versus building its own prop pricing model. Is it just for the database or do they get to see the source code? Is it for the flow traders to use something robust to trade more commoditised products?Thanks

numbersix · December 17th, 2001, 7:43 am

THis is probably not the right part of the forum for this question >>On the contrary, this is exactly the right place to ask this very interesting and intriguing question, cfp928. I shall wait to hear other people's reactions, though, before I take action myself.

Dragon · December 17th, 2001, 8:58 am

what are the criteria for a bank to buy off the shelf pricing software versus building its own. >>The criteria are as follows.1. Is there available software in the market?2. The cost efficiency. (buy one is alway cheaper than build one)3. Are they need alway updating their model?4. Which one is more reliable?

csparker · December 17th, 2001, 10:58 am

A few more to add:a) Can I deploy, support, and upgrade the software within my systems infrastructure and cost base. b) Am I losing / gaining some competitive advantage by buying or building. c) Can I treat my pricing software as a black box, or do I need to know and be able to tinker with its innards. d) Do I have the appropriate skills in my internal development team. e) Can I wait for the internal development team. f) Can I resource the testing. I said a few, but that is more like a handful. My apologies.