[ I N D E P T H | C O U N T E R P A R T Y R E L A T I O N S H I P S ]
more of a quantitative focus on performance rather than service or content . “ When managed well this adds a new dimension to the relationship , another point for discussion and collaboration ,” he argues .
Trading desks and their make-up are subsequently continuously shifting , with technological advancements being a key driver for their change . “ Head counts are evolving , as opposed to reducing , to meet the new needs of an organisation ,” as Wicks highlights . A way in which
trading desks are keeping up with the pace of technological advancements is by maintaining a degree of nimbleness , allowing them to evolve and adapt to the changing needs of clients and organisations . However , with these advancements , practical skillsets should not be compromised or taken for granted .
“ Many firms , particularly the large sell-sides focused purely on flow , will use technology as an excuse to juniorise or shrink a team . All this does is offset the technology gains meaning that you ’ re offering the same - or more likely , worse - service to your clients ,” warns Winzor-Saile . “ Having a quality , experienced team will always provide a better service than pure technology alone .”
“[…] sell-side traders are an integral part of maintaining and cultivating partnerships , and ensuring access to breadth and depth of market liquidity during bouts of volatility .”
JASON FROMER , MANAGING DIRECTOR , CO-HEAD OF GLOBAL FIXED INCOME TRADING AT MANULIFE
INVESTMENT MANAGEMENT
For trading teams to be able to coexist and align with technological advancements , shifts do have to be made . Be it through diversifying the required skillset for a desk , shifting focus more onto monitoring , or creating more space to develop relationships .
To onboard or not to onboard With the growing availability of technology , the challenge today lies in integrating the plethora of systems and platforms now on offer . If various counterparts are utilising different trading platforms , chat systems or voice networks , it can be extremely difficult for all participants to get a full view of what may be occurring in a specific trade . Interoperability is therefore becoming increasingly key .
“ Once these technologies open up and allow the sell-side to share insights directly to the systems the buy-side are already using , all sides will see a big increase in productivity ,” highlights Winzor- Saile . “ This interoperability then allows things like IOI networks and block-matching tools to integrate much more seamlessly into existing workflows .”
With so many different vendors out there and technology providers offering a wide range of solutions , buy-side participants must be mindful when choosing the right ones for their desks . This all depends on what an institution ’ s underlying demands
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