Ready For Innovation

As seen every month in our “In The News” post, which lists the wide variety of publications in which our analysis is featured, we at Ipreo are not shy about sharing our insight and expertise with our colleagues and constituents across the financial world. Not just on this blog, but in a variety of other publications that cover the industry.

Our regular dialog with both the buy side and the sell side allows us to see the new issue market from a unique vantage point, and to respond to trends and issues across the industry. Herb Werth, Ipreo’s Managing Director of Buy Side Product Strategy and Marketing, did just that in a recent piece for Best Execution (“It’s where the buyside and sellside meet.”) in which he elucidates the reasons the primary markets are in need of innovation, and lays out examples of improvements that most in the industry already agree can and should be made.

Best Execution was founded in 2008 to keep the financial services industry abreast of the latest trends in the financial markets, and to explore the technology and services being developed to accommodate and solve those trends and challenges. The piece that Herb contributed to the publication is a perfect marriage of those two mission statements, covering both the challenges being faced by the primary markets and the ways in which technology can solve them,

Here is an excerpt:

Notwithstanding the workflow inefficiencies, deals get done. This is because the market has applied enough brute force to the problem, there is an established ‘protocol’ between the buyside and sellside, the sales person on the sellside serves a critical role, and banks are experts in the legal and regulatory aspects of running a deal and ensure that deals are brought to market properly.

Improvements can be made to lessen the strain on the buyside trader by drastically reducing the amount of time spent on clerical tasks and simultaneously lowering the risk that is inherent in a highly manual process.

The article continues with a list of those improvements.

See that list, and the rest of his insightful piece, on BestExecution.net.