Breaking market conversational conventions signals relational trust between dealers

Evidence

Note that the central conventions of global trading are ostentatiously broken in the deal: the caller discloses his intention instead of keeping it silent (he requests to sell $15 million against Swiss francs [line 6]), obtains only a one-way price (line 7), thanks the Zurich trader at the point where the standard pattern features the deal selection of (“GREAT” and “T[HAN]KS” are misspelled [line 8]), and is greeted by a “WELCOME” (line 9) that ignores the prescribed confirmation sequence. What this means is that the two parties affirm, through the specific formulations used, that they have a long-standing relationship that is based on trust and needs no precautions and formalities. — Karin Knorr Cetina & Urs Bruegger, Global Microstructures, 138

Categorization

• DEFINE: Illustrates how formally deviating from scripted dealing protocols functions as a signal of mutual familiarity.