Can the iPad find a Home in Trading? by Patrick Reames
The release of Apple’s latest bit of gee wizardry, the iPad, created a storm of interest in the consumer markets. Like the rollout of the iPhone, the introduction of this new device had gadget lovers across the country standing in overnight lines, hoping to be the first, or at least one of the lucky few, to get their hands on the coolest new thing to hit the market since … well, the iPhone. In fact, the iPad is, functionally, very much like an iPhone, or better yet, an iTouch (since you can’t call home with the iPad), as it does pretty much the same things that those devices do—it allows users to wirelessly connect to the Internet and download and play music, videos, and small, yet relatively powerful, applications. Still, the iPad is more intriguing machine, if only because the larger screen (9.7″ vs. 3.5″ for the iPhone) gives the user (and software developers) a lot more real estate to work with. It is the larger screen, when combined with its ability to connect to Wi-Fi and 3G networks, that makes one think that perhaps this consumer oriented device might actually have the potential to change the way traders access and interact with both the exchange based markets and their commodity trading and risk management (CTRM) applications.
We are already seeing the iPhone finding traction in energy trading with the recent release of the “Tap and Trade” application from Trade Capture OTC. This new application allows iPhone equipped traders to view positions, chart market movements, and execute trades on various exchanges such as NYMEX/CME and ICE. In fact, since the iPhone can do it, you could conceivably use the iPad right now to trade energy commodities; although according to Trade Capture, its screen is not yet optimized for the application—meaning you’re not going to see any more data than you would see on your iPhone, the stuff on the screen will just be larger. Trade Capture indicates that they are currently working on expanding Tap and Trade’s interface to take advantage of the increased screen real estate, and plan on having the new capabilities out in the near future.
Beyond specialized trading applications like Tap and Trade, it is conceivable that the iPad could find an immediate use on trading floors. With the growing acceptance of web-delivered CTRM applications, where trading personnel access their systems via the internet, an web connected iPad may be able to interact with those internet based CTRM applications much like a trader’s desktop computer, enabling traders and other trading floor personnel to work within their CTRM system while wondering the halls of the office, sitting in meetings, or even while on the golf course. The iPad is not, however, without limitations such as being less “capable” than a full scale computer since it can only run a single application at a time, has limited memory, and can’t run Excel.
There are still a number of unknowns and potential hurdles to be addressed for CTRM applications. The first big one being the question of whether the iPad’s Safari browser will support the web-delivered (or Software as a Service) CTRM products that are currently in use, as most of these apps are optimized and tested to be compatible with Microsoft’s Internet Explorer web browser. Other potential issues are related to the device’s form factor, most notably the lack of a keyboard. As the iPad has a touch screen interface, keying data into an application requires the user to launch a virtual keyboard on-screen and “type” on the screen itself, something many people have difficulty with (especially when nomination deadlines are looming and you’re being yelled at to get your deals in the system!) Apple does sell an add-on keyboard, but that limits mobility, leaving the user sitting at a desk, staring at a monitor a third of the size of what they are used to.
Still, if the iPad’s Safari browser is proven to be compatible with today’s web-based CTRM apps, the iPad could today be, at a minimum, a great tool for those that need to monitor trading activity, like risk managers and executives, allowing them to be constantly connected to their systems and observing their positions and deal flow in near real-time from virtually anywhere in the world. We believe this capability is, in itself, enough to that CTRM vendors should quickly look toward ensuring capability with, and providing optimized screens for, this new technology device.
