This CEB TowerGroup report describes the current and future state of institutional trading and considers the changing mix of high-touch and low-touch trading. They look primarily at US equity trading as a baseline case and draw correlations to global equities and changes to trading of other asset classes.
- The buy-side trading desk is more actively involved with the trading process, has become more sophisticated, and has many tools to assist with accessing liquidity.
- Low-touch trading has exploded, yet the need for more traditional, high-touch trading is not going away any time soon.
- Buy-side desks have raised the bar with regard to sell-side services and they expect superior service across both low-touch and high-touch trading.
- They buy side is vocal about the services valued and what it is willing to pay for; creating a dialogue that helps the sell side better understand how to go about servicing client needs.