Exchange relationships in financial services: marketing equities to institutions

London securities houses wish to improve equity securities marketing to institutional fund managers following major changes in the regulatory environments. There is a lacuna in the literature. Senior level respondents on both sides, from New York, London, Hong Kong and Toronto, participated in research to explore the nature of the marketing relationship. Results show that the industry is characterized by extensive technological development and increasing use of quantitative data but is driven by personal relationships. In addition to factors recognized in the literature (reciprocity, trust, comfort, reliability), these relationships are characterized by: long “development” lead time before pay‐off; consistent daily maintenance by seller; durability; personal relationships being the dominant factor; people being more important than the company they work for; independence from time, place, or distance barriers, important for the globalization of financial services; non‐transferability, the bond being between individuals, not organizations; and an independence from tangible evidence (contrary to industry expectations). Highlights managerial implications for the industry and presents guidelines for future research.