How to get rid of big trading floors?

The problem:

At a certain point in our lives, we have all seen the large trading floors of big investment banks, either in real life or in movies, such as Wall Street, where traders and brokers aggressively trade shares and stocks.

The recent pandemic has brought to light the limitations of conducting business in these antiquated ways. Even though electronic solutions have been in place for many years, customers still want large complex transactions that are worth millions to pass through human beings, not machines. Thus, the roles played by supervising traders and brokers become critical.

History is packed with examples of supervision failures, such as in the cases of Jérôme Kerviel and Nick Leeson; the latter was portrayed by Ewan McGregor in the film Rogue Trader, which was based on the large-scale frauds Leeson had committed. The UK regulator Financial Conduct Authority (FCA) and its equivalent in other countries have allowed, on a temporary basis, brokers to trade at home, but we need to come up with long-term solutions to move on from large trading floors that are costly and may pose obvious problems in times of pandemics

The question:

How to facilitate broking and trading from home with rock-solid supervision that will protect banks and brokers or stockbroking companies and customers alike from the potential misbehaviour of employees?

Brokers not only need to be supervised but also have to interact and exchange information in real-time while talking to customers, as well as to their colleagues.

A virtual ecosystem is needed wherein they can exchange sensitive information under the highest security.

The solution to the problem will not only be of help during the time of a pandemic but will also save billions in terms of cost for maintaining those massive, expensive trading floors. 

6 thoughts on “How to get rid of big trading floors?”

  1. Avatar

    Imagine using a secured VR environment with biometric access keys. Now you can talk securely to both colleagues and clients. This is similar to an AAA gaming environment.

    Trading could be carried out via Blockchain, which is a great fit for this use case. It can provide a secure, authenticated, real time means of trading in which each and every trade is recorded immutably in a journal.

    I’ll write this up in a Blitzcard, outlining more technical details..

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top