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Monday, 07/22/2013 1:27:31 PM

Monday, July 22, 2013 1:27:31 PM

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Royal Bank of Canada Deviates from Common Bank Investment Practices

Focuses on happy customers with smart trading

(EMAILWIRE.COM) Paris, France -- The spoils of war in the Wall Street arena are usually those firms that are the fastest and most guarded when it comes to their dealings. However, a particular upstart is now attracting some attention with a counter-intuitive outlook on just how to succeed in the market.

In what is the financial equivalent of the fable “The Tortoise and the Hare”, the Royal Bank of Canada has found a way to raise its stock and trading totals in the United States while embarrassing a rather Canadian mindset about it all.

The effort has a lot to do with the bank's New York trading desk and the technology it uses to cultivate the slowing of orders to evade the high frequency trading marks. Unlike almost all other banks in New York, it has found a way to find much success with the concept that is rarely used. Many banks privately carry out customer trades from the public, but recently the firm has also been asking to see some regulatory change in Washington which could further benefit the outfit.

Large players like Credit Suisse and Goldman Sachs are still trading higher quantities of overall America stocks, but the Canadian bank has become adept at cultivating popularity with more sophisticated mutual funds (as well as investors), according to Tabb Group.

Critics of the modern markets look at RBC as being a breath of fresh air. In certain cases, other banks have incentivized trading in exchanges that aware them particular rebates, rather than in the way that will allow for best prices for customers they are billed to serve. Royal Bank of Canada has instead ignored the fees and rebates, which again cultivates a stronger following from thankful customers.

“They really go out of their way to try to find ways to support our business — sometimes actually to their own detriment,” said Robert McGrath, the head of trading at Schroders, which manages $360 billion and uses R.B.C. “That’s pretty unique in the industry.”

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