Electronification is nothing new. Long gone are the days of pit trading, its relics hanging on office walls in the form of photos and framed jackets. The storied shift for equities and FX trading is well known, and for large tier 1 institutions, even the move to the OTC markets has been in motion for some time but the business impacts of the shift are beginning to come into clearer focus.
Sell-side institutions are under pressure to cut costs and increase revenue, putting greater pressure on old-fashioned manual workflows. The days of keying requests manually into several single dealer platforms, a handful of Electronic Communication Networks (ECNs), plus phone calls, emails and chats, are just no longer sustainable.
The shift to Request for Quote (RFQ) automation is becoming a vital piece of this puzzle for sell-side institutions, from advancing their ability to price out to customers quickly and profitably to fundamentally shifting these desks to a flow business. For the OTC markets, electronic RFQ can help institutions realize efficiencies in cost, collateral, operations, scalability, and price discovery—not to mention regulatory risk reduction.
On March 16th, 2017 featured speaker Robert Gray discussed the industry challenges and market forces continuing drive toward the electronification of the OTC derivatives markets, the latest products to make the move, and how technology advancements are putting the shift in reach of institutions big and small.