Mostly… fixed income and cross product eTrading

August 30, 2006

Customer choice???

Filed under: etrading — holky @ 3:05 pm

“Consumers yearn for fewer choices, not more choices, and they will yield to a trusted advocate who will clear a path through the chaos for them.” – Futurist Melinda Davis, founder and CEO of the Next Group

for etrading the sales credit should reward the trusted advocate’s (salesperson’s) overall ability to steer the customer to the right choice of electronic venue providing best execution for customer, then to maximise their use of that venue for applicable business. The credit itself should then represent a slice of the genuine value of that trade to the bank, taking its full lifecycle into account (see previous post on tiering). Looking at the genuine overall value of the trade will highlight where costs can be saved, which will then incentivise the salesforce to steer in the right direction. However, I suspect in many banks the sales credit is still a fairly flat metric based around bid/ask spread.

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