Liquidity provider and prime brokerage firm Finalto recently released a guideline to help brokerage firms navigate the complexity of marketing to retail investors while adhering to regulatory standards. The guideline emphasized the importance of striking a balance between catering to digitally savvy retail traders and maintaining relationships with traditional institutional clients.

Dubbed "The Finalto Broker Series," the guideline delves into the complexities of marketing to a rapidly evolving audience of retail traders. According to the company, retail investor activity accounted for nearly 25% of the total trading volume in the equities market in 2021. This surge in activity has reshaped the trading landscape with the advent of digital platforms, presenting opportunities and challenges for brokerage businesses.

Engaging Retail and Institutional Clients

By understanding the unique preferences and regulatory requirements of different demographics, brokers can design their marketing efforts to effectively communicate with diverse audiences. Additionally, Finalto highlighted the significance of crafting cohesive brand identities that resonate with both retail and institutional clients.

Klelia Orphanidou, the B2B Head of Regulatory Compliance at Finalto, mentioned: "Compliance in marketing isn't just about ticking boxes and avoiding penalties. It's about building a culture of responsibility and fostering long-term relationships and brand loyalty." Last year, Finalto launched a new addition to its Broker Series dubbed "The Liquidity Whitepaper." This document analyzes the intricacies of liquidity provision and offers insights for brokers and traders. At the center of Finalto's liquidity guideline is bespoke pricing.

Chief Analyst Neil Wilson mentioned that liquidity provision isn't a one-size-fits-all model. Instead, it prioritizes designing pricing to meet individual client needs while ensuring access to a diverse and secure liquidity pool. By narrowing spreads and utilizing skewed price feeds, Finalto aims to provide optimal pricing that aligns with clients' trading strategies.

Boosting Liquidity Solutions

In March, Finalto Asia and oneZero Financial Systems strengthened their partnership to bolster liquidity solutions. This collaboration entails integrating the Equinix Tokyo data center into oneZero's infrastructure, thus expanding Finalto's liquidity offerings to traders in the region.

This collaboration grants Finalto access to over 250 brokers and banks within the oneZero EcoSystem. With the addition of the Equinix Tokyo data center, Finalto's Asia-Pacific clients can reportedly tap into a broader network of liquidity providers, thereby enhancing trading opportunities and efficiency.

oneZero's Institutional Hub is a trading solution for financial institutions and brokers. It facilitates access to liquidity across multiple asset classes and offers functionalities in aggregation, price formation, distribution, risk management, and credit management, thus enabling traders to access trading tools and analytics.