EFN tells us that humans are back in vogue…
Wild swings in global stock markets and unprecedented volatility are luring buyside and sellside traders back to the personal touch broking model, where they can find an experienced broker on the end of the phone. Electronic trading remains a high priority, but the human element may be the key to brokers gaining business.
Do you think this is indicative that e-trading technology still isn’t “good enough” to merit the trust of the customers wishing to trade? In which case what function is missing? Based on that article, it’s some sort of reassurance screen/popup; “yes that looks like a very sound trade, pretty much in-keeping with what were seeing, so please click OK to invest wisely”. Ok, that’s an exaggerated thought, but surely a colour/context check could be part of an automated negotiation/orderflow?
Yeah with retail punters! Cold hearted Funds don’t want to be annoyed by some rubbish spinning, back slappin’ broker!
Comment by waratah — November 14, 2008 @ 3:42 pm
Another case for “human interaction” of course is the increased potential for market anonymity. If you are using a trading platform then the likelihood is that everyone else in the market will “see” what you are doing almost instantaneously. Recent US moves to increase “transparency” in the markets could result in LESS electronic trading as participants try to “hide” their activity. As TABB Group recently stated… “If you are a large market participant doing a series of transactions and there is transparency, the market quickly becomes aware of what you are trying to do and it could be detrimental to future trades.”. I personally believe that more transparency is a GOOD thing as it should allow the markets to “self regulate” and reach equilibrium faster.
Comment by Chaz — June 29, 2009 @ 9:36 am