The Role of Turrets in High Touch Trading

The Tabb Group published a commentary note on the evolution of the turret as a tool for traders (Title: “Trading Turrets DOA? Not Quite” at www.tabbgroup.com) recently.

Money quote: “…the turret has the potential to be the communications hub that helps high-touch traders drive client business.”

The piece asserts that turrets will remain a key part of the trader’s tool kit but that the value of the turret is shifting along with the value proposition of the trading desk. That is, away from its’ historic mission as a device that offers high-capacity, split second connections toward an integrated client relationship tool for high touch traders.

The logic is simple. As order execution is achieved increasingly through electronic messaging the emphasis for sell-side traders has shifted from that of “order taker” to relationship manager. Timely delivery of news, research, market context and insight  is the coin of the realm.

Tight integration with the customer relationship management (CRM), order management systems (OMS), collaboration and productivity applications is becoming critical to a trader’s success because “client orders can be easily communicated through instant messaging, which is some ways eliminates the need for a high-end technologically advanced phone” according to the author, Henry Chien.

Our work on trading floors over the last four years confirms these findings as we find more and more customers who are focused on advanced integration with Microsoft, smart phones and various CRM applications and requests for proposal (RFP) now regularly specify this type of integration. In recognition of this trend, WCS launched the Crossover Series IP Trading Desktop which has been extremely well-received, offering a range of trading devices and integration options.

The bottom-line is that while turrets must always offer a high degree of availability, capacity and speed, the value of the sell-side trader is migrating from an execution to a relationship orientation and their tools will necessarily reflect this in the years to come.

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Date: Monday, 7. February 2011 17:32
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