Clearpool Seeks to Validate the Need for Transparency and Control in Electronic Trading – The Evolution of the Buy Side/Sell Side Relationship

NEW YORK–(BUSINESS WIRE)–Today Greenwich Associates released results from an independent study Control and Transparency – How the Buy Side Seeks to Manage Their Broker Network, commissioned by Clearpool analyzing the expectations the buy side has of their brokers as they demand more transparency and control in order routing.

The quantitative study revealed several data points the sell side can leverage in ensuring they are meeting the needs of their buy side clients. For instance, 58% of respondents cited better trading performance and detailed order routing transparency as reasons to route more flow to brokers.

“There are many challenges the sell side has to face, but also many opportunities for brokers to differentiate with innovative technology solutions to meet the needs of the buy side and a changing market microstructure,” says Joe Wald, Clearpool’s CEO. “The study confirmed what we expected, as the buy side takes more control over order routing the nature of the buy side and sell side relationship will continue to evolve. The brokers who stand to fare the best are those who can consistently offer better quality execution and provide greater levels of control and transparency to their clients.”

Key findings in the study include:

• When judging broker performance, over three quarters of traders indicate that execution quality is the most important factor, followed by access to liquidity.
• When selecting a broker, ease of system use, reliability and quality of technical support, followed by proven execution quality of algorithms were key factors.
• High-Touch channels require low-touch expertise, even though over 50% of buy side order flow is sent via high-touch sales traders, a significant portion is executed through algorithms.

For more study findings from the research conducted by Greenwich Associates on behalf of Clearpool Group, please download the report here.

About Clearpool Group

Launched in 2014 and based in New York, Clearpool Group, Inc., offers advanced electronic trading software and provides independent agency broker dealer execution services. Clearpool’s algorithmic and execution management systems empower market participants to take control of better quality execution by delivering advanced electronic trading solutions for an evolving equity market microstructure and competitive landscape.
www.clearpoolgroup.com