Mostly… fixed income and cross product eTrading

March 2, 2007

Can you eeeempreuuuve???

Filed under: Algos, etrading — holky @ 7:24 am

Electronic sizes increasing. Greater percentage of business going electronic.  But with more algos being used to price each inquiry .. and trying to keep the price as wide as circumstances and order history shows the customer will probably accept at that time, unless the bank has a very clear policy that the machine’s price is the only price available at that point for that customer, then with the knowledge that there is occasionally still some margin (even if that margin is not profit per-se), surely the future is for buyside to continue phone in their important orders so they can beg, steal, borrow, threaten, ask for a favour just this once for a price improvement?

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2 Comments »

  1. How about ECNs building an “IMPROVE, PLEASE” button?

    In all seriousness, I continue to find it disturbing when supposedlly intellingent Funds managing good size (in terms of AUM) still say they will not trade more than €20-25m electronically because they can get better prices on the phone. The implication being that this is a big trade that needs finessing.

    Comment by waratah — March 2, 2007 @ 8:37 am

  2. […] Additionally I’m sure we all expect a desire to satisfy mifid-induced requirements to cause an additional wave of business moving to electronic channels rather than voice – if only to gain an audit of what was done and why.  That’s not a binary voice up to end Oct then electronic from 1-Nov, but once people have realised just how much easier getting a best execution ‘certificate’ from a platform will be compared to d-i-y, there seems little argument to continue to trade much of the basic flow in unexciting size by voice (er, except if you’re still getting a better price by voice) […]

    Pingback by The Wave « Mostly… — April 25, 2007 @ 7:22 am


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