Worldwide Business Research

Independent research with Heads of Trading shows buy side and sell side divided on clearing

An independent study undertaken by business intelligence firm Worldwide Business Research, producers of the TradeTech conference series, has shown a clear disparity in attitudes towards clearing between buy side and sell side Heads of Trading.

The study, conducted with 29 Heads of Trading from across Europe showed that with interoperability set to become a key feature of capital markets, the majority of buy side traders are already beginning to consider where their trades are cleared to be significantly important, with most agreeing that choice of clearing house could be a key factor of best execution. Amongst sell side respondents however, the majority expressed little interest in the subject of where trades where cleared.

The research indicates that as interoperability continues to offer a greater choice of where trades are cleared, brokers can expect their buy side clients to increasingly ask probing questions about how this is influencing the execution of trades – and many will have work to do before they can answer such questions satisfactorily.