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Article: Pressure on the Bulge Bracket: Relationships in flux as buy side insists on.
- Article from:
- Securities Industry News
- Article date:
- October 16, 2006
- Author:
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Institutional trading desks--in keeping with the general Wall Street technology climate--have been on tight budgets since the tech bubble burst in 2000, even as their profits have markedly improved. The buy side's determination to cut costs puts competitive pressure on the brokerages they rely on for trading and related services, and these firms in turn have cut back on staff as order flow is migrating increasingly to electronic platforms.
"The sell side has had to change the way it reaches out to the buy side, and that allows the buy side to allocate more order flow to low-touch channels," said Larry Tabb, founder and CEO of Westborough, Mass. research firm Tabb ...