For today’s sell-side trader, the value of a trading turret is not so much in specialized technology but as a simple, easy-to-use and robust office phone. Internal messages and client orders can be easily communicated through instant messaging, which in some ways eliminates the need for a high-end technologically-advanced phone.
Additionally, as most traders prefer a separate physical phone to an IP soft phone on the computer, the trading turret won’t be phased out anytime soon. In part this is because old habits die hard, but there is more to it than that. Screen real estate is scarce for traders, even for those with four or more monitors. Bloomberg, an OMS, an EMS, analytical tools, Outlook and a variety of other internal applications quickly take up all available pixels. That being the case, it’s unlikely that the turret will be replaced by a soft phone anytime soon. Logistics aside, IP phone technology is also considered less reliable than a direct line connection, and thus some traders also value the ability of a trading turret to connect directly with a carrier’s dial tone.
But this is all changing.
With the myriad tools available for communication to the modern sell-side trader, the trading turret will evolve to be a critical tool for client management. For high touch executions, support and trust in broker relationships, coupled with timely information on market color and relevant research, are essential. Thus, traders need trading turrets to be integrated with their existing computer software in a way that ensures efficient communications.
Ideally, a sell-side trader can look at his or her order flow on the OMS, look at a specific order and be able to directly dial the client with video on the trading turret through the desktop. Many traders today would like to see their trading turrets integrated with Outlook to dial directly using the computer, saving time in an environment in which seconds matter. Based on recent TABB Group conversations with the sell side, integrated video is also in high demand for next generation trading turrets. Now that trading relationships span across the globe, the ability to see facial expressions and gestures adds much more value to the sell-side trader.
For many people on the sell-side today, it’s back to basics – the need for a robust, yet easy-to-use trading turret (albeit in the future, with video capability). While hardware replacements at major investment banks are infrequent and done every decade or so, there’s still an opportunity for a more robust trading turret. This can be achieved through improved turret software that integrates the turret with existing computer tools, and has a focus on client management.
IPC’s IQ/IMPACT software takes a step in this direction, offering an interface that integrates the turret functionality with PC applications and the firm’s CRM system. The key is developing a software solution that easily blends into a trader’s existing workflow and makes it more efficient.
In other words, it’s not quite time to write off the trading turret. Rather, the turret has the potential to be the communications hub that helps high-touch traders drive client business.
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3 Comments to "Trading Turrets DOA? Not Quite":
Al Toon
05 January 2011
New financial products that provide higher margin and are more specific to each institution will always be a focus in the market. These products will always require a more high touch approach and in today's markets - more collaboration and oversight from analysts, risk, portfolio managers and compliance teams. Trading turrets will be the high touch communications portal to facilitate the internal and external communications needed to trade, manage and provide oversight as to these diverse and unique financial products. I agree with Mr. Chine that this portal will become multi-modal with voice, IM, video and E-mail all managed via this turret portal-allowing for the same access to provide lines, hoots and intercoms that turrets provide today. In addition, the trading turret will need to become the applications portal to allow for more efficient management of the high touch financial products that will be delivered, as well as provide the increased efficiencies and productivity that is essential across the trading life cycle today. It will be critical for the trading turret and the platform that it sits on to evolve and be able to meet the business challenges that high touch trading requires and the technology needs to be able to adapt quickly to the fast moving market.
tcharvet
12 January 2011
I share the opinions of Mr Chien and Al. Voice is an important component of the trading cycle and enables closer customer relationships management. As such, trading turrets are still essential: they offer reliability, voice quality performances and enable instant reactions that an IP soft phone can not provide. However, in order to meet the requirements of the different users on the floor and adapt to the markets and regulation evolutions, the traditional “voice-only” turret has to evolve to better integrate with the IT environment to become a true smart multimedia device offering ultimately access to professional social networks and an application store model. Thanks to the new smart turrets, the user could then benefit from a customisable tool enabling them to pilot ad hoc finance dedicated applications whilst keeping the basic intrinsic voice qualities of the turret.
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infinetfs
29 November 2012
Totally agreed from Tcharvet points that trading turrets are still essential: they offer reliability, voice quality performances and enable instant reactions that an IP soft phone can not provide. We are also doing in the same market and offering Adaptive Trading platform(ATP) to provide flexible and cost-effective trading room voice solutions.
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