P4Capital is beginning a series of Podcasts and interviews featuring our executive team, who will be discussing pressing concerns for the Canadian financial industry.
This weeks topic, a one on one with partner Jim Carlson, what P4Capital is and how it can help you.
Amanda: Hello everyone, Amanda here. We have a special edition of the P4Captial Round Table discussions today. A one on one with Partner and CEO Jim Carlson, talking about what P4Capital is and how it can help your company. Stay tuned and enjoy.
Jim: My name is Jim Carlson, I’m a partner in the firm and have been interested in working the Capital Markets scene for the last 30 years
Amanda: To begin, what is P4Capital?
Jim: P4Capital is a division that we’ve set up, fully owned by Planet4IT, that specializes in the technology side of workers that are employed in the trading markets, typically known as Capital Markets, which is the insitutional trading side, or wealth management, which is aligned with the retail side of the business.
Amanda: And where is P4Capital located?
Jim: We’re located right in the heart of the action, King and Yonge Street close to not only the established trading centres such as TSX, but also where the Dark Pools reside within the other financial institutions specifically the banks. Right next door.
Amanda: You said the heart of the action. What makes King and Yonge in Toronto the heart of the action when it comes to capital markets?
Jim: Capital markets traditionally had three major centres: in the U.K obviously, London, New York and Toronto and it used that triangle to expand into the European Bourses, and off to Tokyo and other parts of the globe for a 7/24 look. Subsequent to that initial kind of set up of international trading of money, the BRIC countries have all come on board with their financial institutions and their trading centres. And so we see rises in Singapore and places like that. King and Yonge has been a historic leader in terms of being in the heart of the action and that’s what I mean by it.
Amanda: How does P4Capital compete with other parts of the action, such as Tokyo, or New York or London like you just mentioned?
Jim: It’s one of the most significant centres in the world. I could argue that banking, you now have to make a stop in Toronto if you’re going to do banking. If you want to do trading New York is there, you want to raise some capital you go to San Francisco to do it on the VC side in North America so, from a North American, and most likely an extension through Central and South America, Toronto is kind of the key spot in this time zone for banking. With that said, therefore there’s a need to raise capital therefore, our major banks are always participating in that. And it shows in their year over year results where they contributed anywhere from 500 million to a billion dollars per financial institution.
Amanda: P4Capital is your brain child. How did you first get the idea?
Jim: I’ve looked at and been involved in the automation of Capital markets since the mid 1980s when I was employed by Bell Canada. Subsequently head-hunted out of Bell by General Electric and again it was for the knowledge that I had created, or had access to, in the Capital Markets and those automation and I just kind of really enjoyed it over the years. As we have entered into the next generation of technology, the revolution that we haven’t seen in 30, almost 30 years, the technology is going to very much effect the Capital Markets because their technology of either off the shelf software, or modified code that they’re using, it will all eventually have to be replaced and fairly quickly. For those that realize it and are now seeing the natural leads, we talked about JP Morgan. At the end of the day JP Morgan jumped on the real time data band wagon, Hadoop, built its web and web services using Python which you see at the end of the day, and Giddy-up and they’re going pretty hard. The rest of our financial institutions are going to have to catch up or unfortunately they’re going to be left.
Amanda: Digital revolution, what do companies need to survive this change unlike anything we’ve seen in the last 30 years?
Jim: In the financial markets, it’s all about real time data. 100%. I love the latency wars over the last decade and the stories that have come out of that. You know, measuring lengths of cable and fibre optics and you know, stuff like that. But at the end of the day, that’s just kind of your highway and your speed. Your decision making is all based on high level algorithmics, and those formulas, the quicker they can get real time data into them the quicker, faster better decisions are coming out. And again, you can kind of see that those who have jumped on the real time data bandwagon first. Right now.
Amanda: When should an individual or a company call P4Capital, and you here?
Jim: Now. Hopefully now is not too late. The stuff that going on regulation in the world, so you have to do some reporting, capital adequacy that’s dramatically changing the access your liquidity side. And the time frame Basel III has imposed upon that. You’ve got to be making right decisions right now on what products to invest in either on the buy or sell side, and you’ve got to be able to know when to get in and when to get out with your holdings. And those who can do it better will be the winners, those that are laggard they will be an acquisition property in the next two years.
Amanda: And how can P4Capital help with that?
Jim: Understand what’s got to be done. Know the type of workers that will be done. Have inventories built up of those types of workers. If you want access to some of the top talent, as opposed to top talent as an expression but people that actually know what they’re doing in the Data Science world. They’re doing at the machine level, those people that are working on high level analytics come see us right now. We have people, and we only have a finite number of those people.
Amanda: What about location? Are P4Capitals’ services only restricted to those who live and work in Toronto? What about the rest of the world?
Jim: No, absolutely not. I just came back from the west coast, I was having a chat with some of their scientists out there. P4Capital will be a global brand and will be a global institution.
Amanda: Brilliant, thank you very much. Is there anything else you want to ad before we close off?
Jim: Nope, but thank you for your time today Amanda.
Amanda: Thank you very much. For more information please check out our website, http://www.planet4it.com Thanks and see you next time.