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Brokers Look to Help Buy-Side Color its Trades

This is Part of a Series Sponsored by Clearpool

Traders Magazine Online News, March 20, 2018

John D’Antona Jr.

Despite some early prognostications, the sell-side/buy-side trading relationship is not dead.

To the contrary, the buy-side still wants their sell-side trader, whether they are considered high- or low-touch, to be a part of their execution strategy. As such, the sell-side trader is being asked by their institutional counterpart to empower them with the latest real-time technology and “color” that gives them a leg up in executing trades. Aside from winning the buy-side’s gratitude, the sell-side can also endear itself and make its desk the destination of choice when it comes to order flow and destination.

But it all begins with a phone call, according to Cheryl Cargie, head trader at Ariel Investments in Chicago.  A self-described “old school” trader, Cargie wants her brokers to reach out to her with either color or technology that can help her find liquidity.

Cheryl Cargie, Ariel

“I want them to be my partner in this. Please, call me,” she told Traders Magazine in an interview. “I still look to them for help. I mean, I pay them to be my eyes and ears out there – especially when I can’t see everything that is going on at all the venues. Show me the order flow.”

And if brokers want to succeed in this new paradigm of lower relative volatility and commissions, they’d be sure to call Cargie and other buysiders like her.

Joe Wald, Chief Executive Officer at Clearpool, wants to empower Cargie’s  sell side partners with an Algorithmic Management System (AMS). The team at Clearpool has heard the buyside’s call for a more complete high-touch trading service; one that includes not just a human voice but an individual who can leverage the firm’s algorithms and provide greater control over routing protocols, as well as deliver real-time performance and venue analytics over the lifecycle of an order making the business of trading not only easier, but more collaborative and more profitable – for all.  

“There’s been a real renaissance in the high-touch end of the trading world,” Wald said. “This has evolved out of need for transparency and control of routing protocol, venue choices and anything that has to do with the buy-side’s need for transparency.

Joe Wald, Clearpool

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