Despite the rapid electronification of securities trading, buy-side firms continue to place a premium on human expertise when selecting trading counterparties, according to a new report from Crisil Coalition Greenwich.

The report, The human edge in electronic markets, found that after execution performance, buy-side traders ranked trading desk coverage as the most important consideration in counterparty selection for 2026, ahead of liquidity, operational efficiency and access to electronic trading services and analytics.

Based on interviews with multi-asset buy-side traders across North America, Europe and Asia, the study examines how buy-side firms view their relationships with sell-side counterparties as trading workflows continue to evolve.

“Customer service and desk coverage have become more important because of electronification, not less,” commented Jesse Forster, Senior Analyst, Market Structure & Technology at Crisil Coalition Greenwich and author of the report.

As buy-side traders automate more order flow while covering more asset classes, markets and trading venues with leaner teams, execution has become more complex, increasing the need for brokers that can provide guidance on execution strategy, algorithms, workflow design and trading technology, Forster said.

“The best desk coverage isn’t measured by how often a broker calls, but by whether they deliver timely, relevant expertise that improves trading outcomes,” he told Traders Magazine.

The report also highlights how the role of the buy-side trader has changed alongside increased automation.

“The buy-side trader’s role has evolved from executing orders to managing execution,” Forster said. Traders are spending less time working individual orders and more time designing execution workflows, selecting algorithms, interpreting analytics and overseeing trading technology, he said.

“Automation has elevated the role, requiring broader market expertise, stronger judgment and greater accountability for execution outcomes,” he added.

The research also found that periods of market volatility increase the importance of human judgment. While low-touch electronic trading tools can efficiently manage large volumes during stable market conditions, traders continue to rely on experience and market insight when conditions become less predictable.

“Algorithms excel in normal market conditions, but periods of heightened volatility often require traders to reassess execution strategies, adjust to rapidly changing liquidity conditions, manage risk in real time, and determine when it’s appropriate to intervene,” Forster said.

“Technology provides speed and scale, but experienced traders provide the context, judgment and adaptability that algorithms alone cannot,” he said.

Looking ahead, Forster said the buy-side firms that perform best will be those that pair technology with human expertise rather than treating the two as competing approaches.

“The most successful buy-side trading desks will be those that combine technology with expertise rather than viewing them as substitutes,” Forster said.

“They’ll automate routine workflows while empowering traders to focus on higher-value decisions around execution strategy, market structure and risk management. They’ll also be disciplined about using data to continuously evaluate broker performance, algorithms and trading outcomes, creating a feedback loop that drives better execution over time,” he concluded.