Buyside adapting to changing market

Buyside adapting to changing market

The buyside is having to take on more responsibilities in the face of regulatory change and the squeeze on sell-side firms, a whitepaper by FOW has found.

The whitepaper, run in association with Object Trading, Commerzbank and G.H. Financials, identifies a transition underway in terms of the relationship between the buyside and their sellside providers as part of a restructure of market infrastructure and service provision.

The changes in market infrastructure and service provision is impacting different parts of the market in different ways.

Asset managers are having to adjust to lower levels of liquidity while proprietary trading groups and hedge funds are taking on greater technology procurement and operational responsibilities.

At the same time, banks that are committed to the market are innovating to streamline their operations and offering a more granular but unified service to clients.

Non-bank FCMs are investing in their operations to offer a wider service to clients.

On both the buy and the sellside, collaboration and a greater understanding of each other’s business models is resulting from the changes.

Ultimately, the whitepaper finds that a more transparent, safer market is emerging but the transition to that market is causing challenges and increasing complexity and fragmentation.

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