The fine line between high- and low-touch trading just got a bit more fine.
Wolverine Execution Services (WEX), a provider of technology and execution services to the buy-side, announced today the launch of Request For Quote (RFQ). This new functionality, within the WEX Trading Platform (WTP), provides a simple and fully electronic workflow, which will mirror the traditional high-touch trading experience.
And, according to Joseph Sacchetti, Partner at Wolverine Execution Services, shorten the traditionally long and potentially error-prone process down to a simple and shorter electronic process.
Only available in the WTP, RFQ allows the user to request option quotes for single or multi-leg spreads and quickly select one or many liquidity providers to furnish a single or two-sided market. Once the request is made, the liquidity provider is immediately notified and can respond with a quote. The firm who responds with the best quote may receive a systematized order from the client allowing them to trade the order using WTP.
Sacchetti told Traders Magazine that by systematizing the process, two critical objectives are achieved by the buy-side trader. First, there is the removal of most types of errors that can occur when an order is handled manually – no more sales traders yelling across desks Second, the electronic systematized [MC1]process creates a fully detailed and transparent audit trail that enables all parties – buy- and sell-side, exchanges and regulators – to examine the life of an order from start to finish in the case of an error or market crisis.
Acknowledging our client feedback, WEX has created the first version of our RFQ offering as a method to bridge the gap between voice and electronic trading, Sacchetti said. Clients wanted a compliant, electronic audit trail from the initiation of the quote to the final execution in an electronic format that would emulate their current voice quoting/trading experience. This will allow liquidity providers to enhance their high touch service, while still providing the full transparency that their clients demand, all within WTP.
According to Sacchetti, the RFQs key features and benefits include:
Access multiple liquidity sources and providers
A transparent electronic audit trail in one system
View market data alongside the RFQ
Liquidity provider can trade clients order all within WTP
The RFQ functionality is only available to U.S. institutional traders and within WTP.
Think of RFQ as a simple way to go ahead and try to emulate whats going on today yet systematize high-touch trading, Sacchetti said.
[MC1]Dont have to do this one –
