In today’s financial markets, the conversation is most often about electronic trading, high frequency trading, complex orders via algorithms and so forth. Yet, for the $492 trillion global OTC derivatives markets as well as block and listed markets, firms still conduct business over the phone, person-to-person, a practice which is now availing itself to new technology in compelling ways.
Paul Christensen, who started as CEO of Green Key Technologies in March, told John Lothian News that phone transactions for certain markets is “a much higher quality way of communicating.” As such, technology firms are seeking ways to harness the value in those conversations, as well as meet the regulatory requirements passed down in recent years in the US, UK and Europe.
Christensen said the technology is out there to not only handle compliance and audit functions, but much more.
“Our approach is to upgrade the technology by 30 or 40 years… by taking the latest, cutting edge technology that is available in lots of other places in our lives and applying that to the markets, and making that accessible and available,” Christensen said.
The next step for firms beyond harnessing voice brokerage for regulatory reasons, is to grab all of those conversations, pour that information into a big data bucket and let today’s technology filter out the value in those conversations. For some firms, it could be word filters that help identify a trend in the markets, or perhaps tip firms off that something is amiss in the markets or with one of its traders.
“We’re about data capture,” Christensen said. “We don’t do the analytics. We just provide that to the client to provide all the analytics that they’re used to running on electronic trading on the voice. And that’s super exciting.”
Green Key is also looking to make voice brokerage far more automated, by synchronizing spoken trades with trading software that fills in the key fields for brokers, saving them valuable time and laborious keyboard entry activities.
“That’s what we see as truly transformatio