The value of social media within Single Dealer Platforms


In an earlier post, I touched on how social media can and is being used as a predictive indicator within trading platforms.

A more obvious use case for social media, is of course as a real-time communication channel (with immediate feedback loop) within the overall sales distribution channel of banks and brokers to their clients. Delivery of trade ideas, event-driven market analysis, and the ability to ’empower’ clients with an immediate feedback loop all adds to the overall relationship.

It’s therefore interesting to see Henry Chien of Tabb Forum covering this topic.

In a time where hedge funds demand both actionable research ideas and relevant order flow, all in rapid fashion, social technology is essential for efficiency. It’s not a stretch to imagine this technology as the optimal way a trading desk could alert its entire client base of information on say, ongoing correction in the USD/CHF rate, and then immediately receive feedback of the type of hedges or products clients are looking for.

Henry also touches on the value to ‘the brand’ of such added value offerings.

The ROI of, say, implementing a community of buy-side traders, comes not from the platform itself but from conversations had, and their impact on things like brand value and opportunity cost.

A single dealer platform (SDP) is far more than ‘just’ the bank or broker’s primary relationship channel through which clients access the firms total capabilities.

A successful SDP, should personify the very best attributes of ‘who the bank is’, the ‘capabilities they offer’, and the ‘client service they deliver’ – all critically valuable.

2 Responses

  1. […] As we have covered in previous posts, financial firms are eager to embrace the use of social networks, and these guidelines will help those firms to ensure that investors are protected from false or misleading claims and representations, and that firms are able to effectively and appropriately supervise the use of such new media by their employees. FSA guidelines on social media covered here. Share this:EmailDiggStumbleUponTwitterRedditFacebookPrintLike this:LikeBe the first to like this post. […]

  2. […] Collaborative/Social Media: Empowering users to leverage and seamlessly combine the bank’s own assets and analytic tools from above, with external collaborative tools such as twitter and other social media. […]

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