Mostly… fixed income and cross product eTrading

January 26, 2008

eTrading is dead?

Filed under: etrading, Nuts and Bolts — holky @ 3:45 pm

The Trade News underlines that banks are getting rid of some of their electronic trading talent, just at the point that there is an argument for even further commoditisation of their sales and trading efforts into scalable electronic channels to save a bob or two.  So do you see all of this as indicating that etrading (inc DMA and algo) is still very much seen as a supporting role that can be scaled back to maintenance mode – or is all of this just scaling back etrading alongside an even bigger scaling back of the traditional roles as the capital markets sink into 2008?  Either way, with the consortia in abundance taking a fair slice of the development pie that remains, does this mean we should all expect less innovation this year through the singledealer sites/presence?  

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5 Comments »

  1. Its not dead its ……restin’

    Comment by oxymoron — January 26, 2008 @ 7:22 pm

  2. Etrading is dead. Trading is going transparent and electronic all across the board (the asset spectrum) when banks can once again decide to give trading desks capital. At the moment trading at all firms (yes GS included) is curtailed. Balance sheet is no longer free and as each bank builds balance sheet allocation and analysis systems we will see trading simply go electronic. The dinasaurs are looking up… They see that comet about to hit the Yucatan!

    Comment by Lacidar — January 27, 2008 @ 12:31 am

  3. “banks are getting rid of some of their electronic trading talent”

    Do you mean Silvio Oliviero at JP Morgan? 🙂

    Comment by waratah — January 28, 2008 @ 1:13 pm

  4. E-Trading sales/marketing appears to be.

    “The Trade News” link is for Algo trading and since DKW is mentioned, they’re referring to Nick Wright and his co-head of DMA/Algo there being let go. However, on the FI side, S.O. (he’s now at ION per the Sifma’s Ldn e-trading conf programme) and several others are gone from or been reassigned in JPM. For those w/Bbrg, the JPIX1 page of their eSales people was recently amended.

    I cannot speak for the Eq businesses but the large banks/dealers, such as those in the Fusion group, should be adding staff- in support of their $20-30mm investment in TW- but they’re reverting to their old models of supporting voice sales over e-business when they feel the need to cut staff.

    I commented on the “Incentivisation” post here a few months ago but did not take this argument to its natural end; that is, for liquid rates businesses, these banks should be supporting their e-initiatives and e-sales people while paring back phone-based sales. Paying (w/sales credits, please) a making handful of e-sales people responsible for a few hundred accts (those that do not need another opinion on rates or a call/pitch every day or every week) is exponentially more feasible and economical to paying a desk of sales people covering 15-20accts each and handling 50mm outright swaps and the like over the phone. But this will only work in support of a nimble voice business so an e-team can refer their e-accts to a voice team for structured products that aren’t e-traded.

    Comment by Boast-er — January 28, 2008 @ 4:12 pm

  5. […] 29, 2008 Mostly reports the death of electronic trading. Interesting follow up comments. The names mentioned as laid off are ecommerce/esales people. I […]

    Pingback by Electronic trading job market « Coding the markets — January 29, 2008 @ 9:28 am


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