20 – 26 JUNE 2013
innovation in that space in the near future. “When we get that next generation of traders, we will see folks that are really able to adapt,” he added. TRADING FIRMS
Report: Sellside needs differentiated offerings
A recent report from Woodbine Associates indicates an overwhelming majority of buy-side traders responding to a recent poll don’t feel the sellside differentiates their algorithms and analytics, according to Woodbine Associates partner Matthew Samelson. The report, Execution Consultants: Asset Manager Expectations from Low-Touch Coverage, illustrates some of the frustrations of the firms. Of the 39 senior traders polled, 77% said they do not feel execution consultants clearly and convincingly differentiate their algorithms from those of other brokers, according to the report. A further 78% felt the same way about sellside analytics offerings as well. “The buyside wants simplicity and a succinct understanding of [the offerings], and they aren’t getting that,” said Samelson. Respondents said they want the MATTHEW sellside to provide SAMELSON partner at Woodbine quality algos and a Associates clear explanation of how to use them, but not much else, Samelson said. The firms also want better explanations and information surrounding analytics tools provided by the sellside, Samelson said. Though the majority of respondents did not have much use for pre-trade analytics – only 5% of respondents use them heavily – most brokers provide them
in one form or another due the industry’s herd mentality, he added. Having analytics is seen as a good thing according to 59% of respondents, per the report, but traders want more information on how the offerings are different, Samelson said, adding “they need people to not waste their time”. The difficulties firms face in differentiating their offerings can be chalked up to staffing cuts during the economic downturn that have left the sel ????????????????????????????????????????????????????????? ??M????????????????????????????????????????????????????????????????????????e???????????????????????????????????????Q
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