Over the last 10 years the buy and sell sides have undergone drastic shifts due to two main factors: unbundling and fragmentation. In this talk from MarketsWiki Education’s London event, Steve Woodyatt, CEO of Object Trading, discusses those two phenomena.
Woodyatt details how unbundling and fragmentation are caused, to one degree or another, by regulation and competition. Whereas traditionally the sell side provided a whole host of services to the buy side, now the lines have been blurred and in some cases the buy and sell sides appear to have traded places. These service packages are essentially being “unbundled.” That in turn, affects the clientele.
“Banks are unbundling customers that no longer fit their profitability criteria,” Woodyatt said. “Whole customer bases are moving about to different suppliers and some are finding they just don’t have a home at all.”