With telephone technology improving, voice brokers
soon entered the market, linking banks with direct
lines to large desks of brokers who shouted prices,
market movements and anonymous deal information to
banks in the market, linking offices in each major
centre.
When Reuters saw the amounts that were being traded
through the brokers increase, to compete they
created the Reuters dealing system, that allowed
banks to call each other direct over a Reuters
network, and deal with each other using one
keystroke. The brokers, fearing loss of business,
offered discounted deals on market volumes
transacted. In fact, overall broker turnover
increased, as the fastest way to close an opposing
deal done on Reuters was through the broker –
overall market turnover soared.
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