Greenwich Associates recently published a report, “Electronifying Relationships: Managing Institutional and Reputation Risk,” about the benefits of adopting modern technology to help mitigate risk and keep capital markets firms compliant with regulations.
In 2016, Greenwich Associates interviewed nearly 15,000 institutional investors and the largest broker/dealers around the world to understand their trading relationships, what they trade, how they trade, and what drives their decision-making process. For this research, they examined responses exploring the importance of trust when allocating trade flow to trading counterparties, adoption of electronic trading, the use of voice trading, and the importance of managing reputational and institutional risk.
70% of institutional investors confirmed that the level they trust their brokers impacts how they direct their trades – a stark change from how Wall Street viewed reputation a decade ago. As such, financial firms now must value reputational risk management alongside market and operational risk to limit downside and increase profitability.
With trader voice calls and human relationships still at the center of most financial markets, creating safeguards and maintaining regulatory compliance becomes even more difficult. The solution to relieving this compliance burden? Putting in place technology that drives better controls and increases profitability for voice traded asset classes.
Read the whitepaper to learn more about:
- The impact of broker trustworthiness on trades,
- The importance of voice trading in maintaining that trust, and
- The competitive advantage of adopting cloud and machine learning technologies for compliance.