A new report published by trading communications provider BT and independent research and advisory firm Aite Group, entitled ‘Trade Communication Tools: Enhancing Productivity and Collaboration Through Integration,’ has found that the adoption of a unified communications approach, which encompasses the seamless use and interaction of voice, instant messaging, video, email and chat over one platform, will play a central role in the trading environment going forward. According to the research, this is important to market participants as it increases trader effectiveness and enhances productivity, which improves a firm's bottom line.
The survey sought to examine the role collaboration tools play in a new market environment being driven by regulation, advanced trading strategies and diverse asset classes. A key finding is that voice and instant messaging tools are being used in tandem to support the entire life-cycle of a trade in today's trading environment. Close to 60% of respondents indicated that voice is very important during trading with almost as much importance placed on instant messaging. Video conferencing followed in third place.
The survey found that improved external collaboration is one of the key benefits of an integrated voice-centric trade communication infrastructure. Approximately 80% of survey respondents said that integration across different communication tools is critical in maintaining relationships with clients and counterparties.
Integration across various trade communication tools including instant messaging is deemed important by most of the respondents. However, over 40% of respondents indicated low or no integration, suggesting a substantial growth potential for vendors specialising in integration across various trade communication tools.
"Financial institutions are fast moving to a new paradigm leveraging collaboration technologies to better manage their client and partner relationships," says Mark Akass, chief technology officer, BT global financial services. "This is creating opportunities for competitive edge through enhanced productivity, increased margin, and better client service. BT's network centric approach to implementing trading room technology capitalises on this demand by enabling firms to operate more efficiently providing a flexible approach in response to changing market conditions."
Sang Lee, managing partner, Aite Group, remarks, "In today's increasingly global and complicated trading environment, integrated voice-centric communication tools continue to play a vital role supporting the entire trade life-cycle, leading to enhanced client services and overall productivity."