Future Of Brokering

[buffting]

whats the future of institutional brokering (not inter dealer)?

Specifically in the metals / FX / futures arena?

The globalisation and advanced electronic world means that clients dont require brokers to inform them where markets are? They just want electronic trading platforms to execute their own trades.

Is there an opposing vision to that above?

 

[gooseman]

yes

 

[buffting]

please enlighten me Gooseman...

 

[gooseman]

brokerage not just about prices.

 

[buffting]

so client relationships - satisfaction - perks right...

 

[gooseman]

no. liquidity, price discovery, risk transferal, anonymity

 

[NetTecture]

on top possibly API etc., sservice delivery. Manual brokering will disappear on exchanges further (more pits closing), brokers will automate. The question is - how well

 

[buffting]

liquidity - provided by market makers - and electronically

price discovery - ?

risk transferal - the brokerage is still there for transfer of risk - but no need for brokers to be there to monitor margin etc...?

anonymity - electronic trading is anonymous no? algorithms to put large trades into the market discreetly?

 

[gooseman]

liquidity-not everyone is on the screen all of the time. And liquidity doesn't just come from market makers

price discovery-OTC trading

risk transferal-maybe too busy to even bother looking at screens/away from screens etc. Call your broker, he does it for you.

anonymity-if anything goes on in size algo or not, i'll know about it. plus the good old broker loose lips.