CLSA Deploys VoIP-based Trading Turrets

HONG KONG-Securities firm CLSA Asia-Pacific Markets is implementing trading turrets with voice over IP (VoIP) capabilities from IPC Information Systems, confirm IPC and CLSA officials.

The decision to use IPC was driven by CLSA's desire to improve trader productivity and reduce operational risk, says a CLSA spokesperson.

For the global rollout, IPC will install and manage 130 turrets and 160 enterprise-wide CLSA traders will use IPC's IP-based turret IQ/Max voice systems, upgraded this past March (DWT, March 20). The deployment began late last month and will be completed by the end of this year, officials say.

The VoIP-based system will debut in a mixture of new and existing CLSA sites across 11 markets, say CLSA officials. The markets include Hong Kong, London, New York, Singapore, Taipei, Bangkok, Seoul, Kuala Lumpur, Shanghai, Beijing and Mumbai. The Hong Kong-based CLSA provides equity brokerage, investment banking and asset management services. Its major shareholder is Credit Agricole.

The VoIP-based telephony systems will be replacing the incumbent turrets from BT and Orange Business Services Trading Solutions (formerly Etrali) that use time-division multiplexing (TDM) technologies. Officials at Orange decline to comment upon the new deployment.

Low-cost VoIP options for the trading floor are not always the best solution for demanding trading rooms, says Dan Moran, general manager for North East Asia for BT. VoIP-based turrets can suffer from significant decreases in voice quality compared to a TDM system for traders who are doing multiple deals at a time, Moran says. However, VoIP-based platforms are well suited for disaster recovery situations because traders can access their VoIP back-up systems using remote IP connections. "VoIP should only be used where it makes sense," he says. "This is not always the case for large trading floors."

Even so, CLSA, which has previously employed TDM-based turrets from IPC, wants to forge ahead with VoIP-based trading turrets, says Rajah T, chief information officer (CIO) for CLSA. "CLSA wants a strategic partner who can help us explore the possibilities of VoIP for the trading floor," he says.