Make electronic trading easier to understand!
That’s what buyside wants from the sellside when it comes to algorithms, according to a new report.
They demand that the sellside either explain their workings in a straightforward manner or watch order flow go elsewhere.
That’s what Woodbine Associates said the buyside requested in a new report, “Sales-Traders: Asset Manager Expectations from Low-Touch Coverage.” Brokers must be able to provide greater understanding and knowledge of their electronic offerings, such as algorithms and transaction-cost analysis methodology, if they want to offer a better low-touch trading experience, the report said.
The report asked institutional investors how sellside low-touch execution consultants are performing and what they can do to win more of their business, said Woodbine principal Matt Samelson, author of the report.
A majority of buyside respondents said algorithms were the most important item offered by a low-touch desk. And yet only 46 percent of those surveyed said execution consultants can clearly and succinctly describe the operation and mathematical underpinnings of their algorithmic offerings.
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