Execution methods
The survey also covered execution methods and their reliability and concluded that the top choices were Streaming Risk Transfer, chosen by 65% of respondents, and Primary Market Execution, chosen by 24%.
Banks were more enthusiastic to trade on the Primary Market because they found it the most reliable mechanism to get their executions completed. Most buy-side participants went for immediate risk transfer to their relationship banks. Nonetheless, 70% of corporate and asset managers preferred Streaming Risk Transfer.
Jim Kwiatkowski commented:
The balance of the answers highlighted an increased use of tools to automate the workflow around a voice trade and algorithmic execution.
The results also clearly show that request for quotation was the most reliable way of getting FX business done for a very significant proportion of the market.
The increased use of Send Details, which allows trades to be agreed by voice, but then automates the booking through normal Straight Through Processing, suggests that many clients opted for electronic trading tools, even for voice trades, to reduce the risk of booking errors and satisfy compliance concerns.
Communication
30% of responded said that communication with colleagues as the biggest challenge in transition to work from home, followed by market conditions on 23% and communications with clients/dealers on 19%.
Jim Kwiatkowski said:
Difficulties in communicating could be part of the reason why electronic trading was found from the survey to be far more reliable for our participants than ‘Voice risk transfer’.
It also shows that instead of reverting to old-world methods (voice), the market is now so far down the path of electronification that it pushed even further in this direction as the crisis evolved.
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