Closing at the open

“The Jungle is Dark but Full of Diamonds” – Arthur Miller, Death of a Salesman

It’s 07.00 am and the markets have opened. On cue, the electronic chats tumble onto the screen like the emptying of a Christmas mail sack. The terminal is alive with green and red. “Buys”, “Holds” and “Sells” are called across the floor from research, and the latest news about yet another government outsource services company in trouble hits the desks. Your clients need your advice. PDQ.

It’s 07.20, you’re trying to copy and paste pieces of information into trading ideas for your clients that are relevant and sent in time to make a difference.

With every minute that passes, your ideas’ value is depleting as the markets react and start to price in all the data.

It’s 07.40 and you are nearly there. You have pulled together credible recommendations for your top five clients. You start hitting the send button and throw in some follow up calls.

It’s 08.00 am and you start sending ideas out to your tier 2 clients, but it’s too late to make a difference. Most of your tier 2 clients are someone else’s tier 1, and they have been looked after by your competitors. And it will be the same tomorrow, and the day after that, except for one thing that is cast iron guaranteed. The only thing that changes is that it gets harder. Harder, in that the information seems to inexorably grow in volume, velocity and variety. Electronic trading systems, CRM systems, online news, blogs and articles, with Twitter shouting at the back of the room with its hand up trying to be heard.

It’s impossible to assimilate all of this data, produce trading recommendations and give tier 1 service to all your clients. No single human can do it. Many humans can, but the costs are equally impossible to sustain.

The only possible answer is technology. Compare:

It’s 07.00 am and the markets have opened. A computer has read every chat from IB or Symphony. It has read every financial news article, it has read every useful blog and social media stream. It has looked at price. It has looked at watchlists, client holdings and trading histories. It has read about every asset, sector or portfolio you and your clients are remotely interested in. It has assimilated all of this data at machine speed and produced trading suggestions that are relevant to individual clients (all clients, not just tier 1).

It’s 07.05. You are validating the suggestions and adding your thoughts and expertise. Adding your real value. It’s 07.15 and you start hitting the send button. All of your clients are receiving great help at turbo charged pace.

The LodeBot from LodeStar, www.lodestar-ecosystems.com, does precisely that. The LodeBot is a next generation intelligent robot that takes many and various sources of data about assets, generates stories and suggestions about those assets, whilst at the same time understands who is interested in those assets.

For more information contact: lodestar@lodestar-ecosystems.com

 

Footnote:

“Meanwhile, cognitive agents, smart work flows, and natural language processing are most useful in client services, for example, for creating customized email responses.

McKinsey recently compared the penetration of digital execution and trade processing of eight banks in the cash equities business, and found that those with the highest levels of digital execution saw front-office revenues per producer increase by as much as eight times, while those with the highest level of post-trade digitization posted four times more trades per middle- and back-office FTE than the bank with the weakest digital resources.”

https://www.mckinsey.com/industries/financial-services/our-insights/cognitive-technologies-in-capital-markets