Markets businesses need to change continuously as standing still will mean going backwards in comparison to your competitors. However, the complexity of markets businesses means that change can have unintended consequences both for the markets business and for its clients.
Successful change requires the combination of a clear vision and strategy about what you are trying to achieve, and the necessary understanding and buy-in from all functions of the business.
Case Study – Brexit Preparation
In the second half of 2019, OTC market makers found themselves with many European clients facing their UK entities. In the event of a “No Deal Brexit” these trading relationships could potentially have become illegal. To mitigate the risks associated with this many European governments (including the UK) produced temporary national regimes to allow these trading relationships to continue.
However, each of these national regimes was different in scope and applicability and different clients had different expectations around their trading activity post-Brexit.
To address these challenges the following steps were taken:
- Clearly articulate both internally and externally the constraints and requirements on the market maker
- Listen to clients to understand their constraints and requirements and clearly explain to them those that impact the market maker
- Take the time to understand each of the national regimes and how they might apply to different clients
- Finally, classify clients into different groups based on their indiviudal migration needs
At Hilltop Walk Consulting, we work with our clients to both help them crisply articulate what they are trying to achieve to all relevant stakeholders internally and externally and also to gather the necessary information from those stakeholders to ensure that accurate appropriate decisions are taken at every step through a change programme.