Truth be told, voice trading is already on the way out, along with its first cousin, trading by instant message. The march towards digitization continues, and in this case, for very good reasons.
1. Slow and steady loses this race.
Voice trading is slow. Painfully slow. Terminally slow. In today’s markets liquidity can come and
go in an instant. You snooze, you lose.
2. Why pay $10 for something you can get for $1?
Voice trading is expensive. Really expensive. Better widen out those bid-offer spreads….
3. Can’t read my poker face.
As a matter of fact, I probably can read your poker face. Voice trading can give so much away.
Hard not to tip your hand and watch those prices shade against you.
4. Do you have a pencil?
You’re going to need one – this is a bit of a complicated order. Can you read that back to me?
Voice is a terrible way to execute anything but the simplest order.
5. Let me get my ops team on the line.
You did the trade, but now you need to book it. Let’s hope it can be settled in all those
accounts. Just hand it off to operations – those guys can figure it out.