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The biggest change since the financial crisis is that the buy-side (mutual funds, hedge funds, pensions) is now in the driving seat for determining what the fut
by jim_greco 12y ago
The biggest change since the financial crisis is that the buy-side (mutual funds, hedge funds, pensions) is now in the driving seat for determining what the future of markets look like. We're seeing that with innovative new exchanges like IEX in the equities space.
We've built demand on the buy-side and are now reaching out to sell-side partners who are interested in moving the market forward. The parts of the sell-side that haven't invested in technology and are holding onto their old ways aren't very excited. The parts that have are a lot more open and we are looking forward to having them onboard on day one.
- Dwolb 12y agoAh great move. Capturing the scarce side of the market usually works unless there's some sort of market anomaly (legislation, etc). The platform sounds interesting and I'm working on a similar problem in a durables market. Would love to talk more on tactics offline if you're interested/available.
- jim_greco 12y agoEvery market usually has the problem of a lot of supply and little demand or a lot of demand and little supply. We were former US Treasury traders so we understood the part of the problem to best attack first. Other asset classes like corporate bonds are the opposite market dynamics and we are still figuring out the right approach. Would love to connect. First initial last name at directmatchx.com
- jbapple 12y agoWhy is the buy-side in the driver's seat now?
- galen211 12y agoThere's been a lot of concentration in assets under management among a few top buy-side institutions while dealers have reduced their risk tolerance/balance sheet and been displaced by electronic market makers, relative value hedge funds, and proprietary trading shops.