Custom «Market Survey» Essay Paper Sample
There has been a substantial downsizing in the commission rates amongst the buy side firms, and for this reason, consolidation of the broker lists. In as much as trust is paramount in the business, commissions play a significant role, and with the fall in the rates of the commissions, firms plan on re-evaluating their broker list. The article explores the reasons behind the decrease of the central part of brokers used by the buy side. When dealing with the buy side, several steps seem to be similar, and in the event the differentiation does not occur at the execution stage then it will appear the research field level. Despite the reduction in the number of core brokers, most of the survey respondents seem happy with their coverage in the work. The main subject of the article is the introduction of a new product in the market. The creators of the product aim at capturing the consumers’ attention. This is a necessary step, because failure to which will allow customers to go back to the product they can familiarize.
The main point of concern in the buy-side’s business is the level of algorithms, which contributes to the level of profits. There are various factors, which contribute towards the profit levels of any business, and a commission of the brokers is one of them. Demand for business is subject to elements such as succulent coverage of the consumer market (Chapman, 2010). In order for the business to attain high levels of demand, there has to be adequate product ease in the market and familiarity. In the various researches, liquidity access, performance, and the broker relationship made it to the top list as outstanding elements. Therefore, demand in business should be the stepping-stone to every partner and consumer.
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Barclays Revamps Algos and Router. Inside Trading: BROKERAGE
The article outlines the steps the bank hopes to take in an effort to attain the high levels of profits. In such situations, the bank has realised the importance of utilizing the straightforward methods to attain profits, such as the algos and router (Mehta, 2009). After this realization, the bank focuses on using a pronged strategy in order to achieve its aim to move up from the midst of the main group and right into the top rank of the broker-dealers. The strategy will involve installing its smart order router internationally, establish its dark pool Barclays LX, and make straightforward its algo offerings. In relation to the buy side, the article emphasizes on the significance of the simplicity and consistency. After much consideration, Barclays adopted the new strategy with the hope that its consumers will be comfortable using the innovations, and in turn, report better services and products.
Offering simple and consistent products to the buyers makes the process easy for them. More so, it encourages consumers to transact with the firms more often. Algo and router are the latest electronic innovations, which have increased the demand for certain products by various firms. To increase the demand of products and services, firms need to adopt innovations, which are undemanding and consistent. Electronic innoations have been paramount in changing the approach businesses give to attaining profits. Most firms will not embrace the ideology before seeing the practical essence of incorporating it in the business. For instance, Barclays had been resistant to embrace the algo and router strategy, but had no choice considering the demand from customers. It is almost certain that having these strategies and innovations enables the firms to have control over the market. For this reason, customers will remain loyal to the products and services of the firm. Employing Information Technology in trade is a crucial step that most companies fail to use, and yet, it can bring better results.
A New Way to Judge the Buy side- Feature Story Nina Mehta
In the contemporary world, it is essential for traders to evaluate the performance of buyers, as this is the paramount part of the business. Most firms are embracing the ideology of introducing systems that can evaluate and quantify the value a trader offers to the company’s investment process. More so, the system will allow the detection of the behavior of traders with the objective of the firm being on top of the list. The evaluation of the buy side has been neglected for a better part of the century. Majorly, traders focus on the value they add to the investment process forgetting that of the buy side. This debate led to several other firms’ focusing on the making the idea workable. These companies included Fidelity Investment, Wellington Management, Franklin Templeton Investments and Alliance Bernstein Investment.
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Trader metrics contributes to the increase of the demand of products and services. Instead of traders focusing on the value buyers bring to the different investment, the focus should also be on the traders. Besides putting the investment process in motion, traders have other roles, which can impact the profit levels of the firms. Knowing and understanding the value of a trader will be instrumental in implementing the other relevant factors of business. In the event, there is a discrepancy and the trader’s performance is perfect, then the traders should receive compensation. The lack of measuring the traders’ value makes them bear the burden of losses, even if the investment process failed because of other reasons. Ranking of traders in peer environment enhances the competition in the stated field (Armstrong, 2012). While making the traders comparison, it is necessary to include the trading region, trade size, momentum, market cap and volatility. In the end, the benefit of the benchmark is that a trader’s outcome can be compared to a passive engagement strategy that an algorithm, could attain with minimal market influence.
Buy side: Turnover Up during Crisis. Inside Trading3 Peter Chapman
Turnover is a gauge of how long a stock remains in a group. In dividing the value of all the purchases or sales, depending on whichever is lower by the fund’s net asset value will give the turnover level. The article indicates that group turnover rose sharply during the 2007-2009 financial crises. For instance, traditional mmoney managers implementing the long-only strategies raised their turnover ranging from 12- 16%. More so, value managers reported similar results, which were a clear indication of the relationship between the economy crisis and the portfolio turnover. The article explains these results in relation to the credit crisis and the related market volatility, which may have had an upward impact on the turnover. However, it is hard to figure out whether the turnover was because of unpredictability, or, it caused volatility.
Most businesses will be influenced by instability of the economy, and this may lead to poor turnovers in all sectors. However, other firms, especially those, which use traditional money managers and value managers, are likely to report increased turnovers during times of the crisis. In this instance, it is almost certain that the economic crisis may have positive impacts on such firms. Market volatility is inevitable while handling business matters and, therefore, it calls for proper preparations, just in case it happens. It is recommendable that all businesses maintain or increase their level of turnover irrespective of the financial circumstances. There are several mechanisms, which businesses can employ in ensuring their turnovers remain constant or increase in the event of the financial crisis. The use managers and other tools can ensure that firms accomplish this move of sustaining their portfolio turnover.
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From the above discussion, it is almost certain that buy side requires various mechanisms to help businesses achieve their objectives. In the recent times, the use of algorithms and routers has been instrumental in ensuring that businesses attain their levels of profits. Through the application of the two innovations, businesses have been able to report high rates of profits. For starters, it is essential for businesses to embrace the significance of information technology. Despite its apparent complexity and expensiveness, information technology has been instrumental in advancing and enhancing the business processes (D'Antona Jr., 2012). More so, information technology ensures that most businesses can make use of better ideas and mechanisms in ensuring that they attain their profit objectives.
Notable is the innovation of routers and algorithms, which has been helpful to all businesses. For instance, Barclays bank has reported better results in the recent past for embracing the innovation. In as much as the innovation met substantial resistance from different firms, it has become the most popular and simpler way to enhance profits. Customers enjoy the products and services from companies, which have this technology and at the same time enhance the business activities. In other news, portfolio turnover arises from better management and the use of technology. All these factors lead to high demand from the buy side, as the firms provide efficient and relevant services. Demand from customers will increase the firms’ engagement in beneficial activities, which will benefit both the traders and buyers. Algo and router allow companies to offer consistent and basic products to their customers, while at the same period contending in the similar field.
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