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are certainly benefiting from the growth of buy-side to buyside , or “ all-to-all ” trading on a few specific platforms . “ The additional pocket of liquidity certainly helps us get trades done and participate in the market in a way we could not a few years ago ,” he notes . “ We view this as a complement to broker led avenues of liquidity , not as a replacement .”
With electronic trading comes the added benefit of requiring less time to be spent on small trades . As a result of this , traders are left with increased capacity to focus more on executing larger orders and value-add idea generation for portfolio managers .
“ The biggest potential negative [ however ] is that it reduces the overall touch points with the sell-side , possibly leading to weakened communication and relationships with sales and trading desks ,” adds Fromer . Less communication with the sellside comes with the potential reduction in establishing valuable insights and relationship-driven benefits , which may negatively impact decision-making and market intelligence .
Echoing this , Will Winzor-Saile , managing director , execution analytics and architecture at Redburn Atlantic , notes that with fewer orders being received by the sell-side having a human element to them , this often means
16 // TheTRADE // Q3 2024