The market is more electronic than ever, but relationships still drive the vast majority of trading. It is important to remember that “electronic trading” and “relationships” are not mutually exclusive, and that even the most electronic firms still need to trust their electronic trading counterparties. As such, tools to not only trade electronically but interact electronically must continue to evolve and encourage bilateral relationships even in high speed electronic markets.
I discussed these ideas and the broader topic of buy side/sell side relationships at Symphony’s Innovate conference in NYC on October 3, 2016. For those that have spent their whole lives on the trading desk this might all feel somewhat obvious, but for those around the edges working to support the trading business, understanding how these interactions are changing is important to moving forward.