Proprietary platforms

May 31, 2006

Seems like every bank has to have a proprietary single dealer platform these days. JP Morgan has JPMorganExpress, Lehman has LehmanLive, and DrKW has Revolution. I have a hard time understanding who uses these, and why. If I'm a buy side trader, say a pension fund manager, and I need to buy 100m 10yr EuroGovies, why would I use a proprietary platform ?  Surely I'd go to TradeWeb or Bloomberg, and do a multi dealer RFQ to get the best price ?

I know its the the job of the sales teams to schmooze the buy side traders. But the buy side guys get performance bonuses too, don't they ?

I know JPM's platform started development during the dotcom boom. As such it used Java applets to get interactive trading functionality into the browser. The DrKW offering looks Javaish too. I wonder if anyone's considering building a browser trading client with AJAX, or with the Adobe/Macromedia Flash/RIA platform used by Pandora ?

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