What the buy-side really wants from low-touch providers
According to a new report from Woodbine Associates, the buy-side wants more than anything else is high-quality algorithms that are easy to use and tools that can evaluate the performance of those algos via TCA.
The report makes clear that algos are everything these days when it comes to the low-touch channel. "And yet only 46 percent of those surveyed said that execution consultants can clearly and succinctly describe the operation and mathematical underpinnings of their algorithmic offerings; 23 percent disagreed that their consultants could explain their algos; while 31percent were neutral," according to Traders magazine.
To be sure, there are lots of products out there and the fact that less than half are making sense to their intended audience is a sign of the times. Some products depend on very ornate methodologies that they defy simple explanation. At its root, this is a marketing problem. At the very least, a product manager should be able to succinctly explain how the product works.
By far the more persuasive marketing took involves hard data. Everyone speaks the language of cost savings. If a product manager can stitch together a cohesive big picture of how this product fits in the overall trading environment, that's even better.