Latest Blog Posts

Change is the only constant

Anne Plested, Fidessa

Mar 19, 2015
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The unbundling of payment for research is a top concern for the industry. There seems to be general acceptance that, one way or another, Europe is set on the soft dollar research market becoming a hard dollar one by January 2017. Despite calls for more clarity and the recent publication of the FCA discussion paper on the regime, opinion remains divided as to how the use of CSAs can evolve to survive as a payment mechanism. There’s no denying widespread change is already underway, in roughly the same direction of travel as MiFID II. read more

Equity Traders Looking for Stock Liquidity Can Find It in the Options Market

Gary Stone and John Gardner, Bloomberg Tradebook

Mar 17, 2015
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Long-only and hedge funds looking for liquidity events to grab some stock should consider taking a page out of the HFT handbook and look cross-asset. Specifically, be a liquidity provider to the professional and retail options trading community. For traditional long-only buy-side funds, options strategies can be used for more than just generating income, levering positions, etc. Certain options situations can also be tremendous liquidity events—for stocks. It’s a question of objectives. A professional and retail options trader with deep-in-the-money options positions (e. read more

Quants, Compliance and the Buy-Side OMS

FlexTrade

Mar 16, 2015
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  OMS Challenges for the Buy-Side As hedge funds turn to a more active, quant-style of trading, they often need to run pre-trade compliance checks on hundreds if not thousands of names within seconds. But what happens if an OMS is not built to keep up with the rapid pace of executions and compliance checks?  There’s no doubt that the move toward quant trading has raised the stakes for buy-side OMSs that serve hedge fund clients executing baskets with thousands of names. Some OMSs easily handle big blocks of 100 trades, but they may stumble over executing a large portfolio of names. read more

Holding a steady course

Christian Voigt, Fidessa

Mar 12, 2015
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Having spent the last three months buried under a deluge of MiFID II consultation pages, the real world looked quite different when I came up for air recently. Since ESMA published the consultation back in December, Greece has elected a new prime minister, Star Trek has sadly lost the original Mr Spock, Madonna fell off a stage and a whole new season of House of Cards is available on Netflix. The reading forecast for the next couple of weeks looks relatively calm, though, with only a few documents to digest. read more

As ETFs Heat Up, Liquidity Remains the Elephant in the Room

Mike Baradas, Kapil Phadnis & Gary Stone

Mar 12, 2015
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The institutional investor’s thirst for information and quantitative studies on ETFs has been insatiable. Tradebook has participated in three conferences already this year: Inside ETFs at the end of January and most recently, Bloomberg’s Equity EQ’15 Forum and Institutional Investor’s Trader Forum Winter 2015 NYC meeting. Our topic at those conferences dealt with ETF Liquidity: The Elephant in the Room Click here for our detailed session notes from the Trader Forum discussion. In all three meetings we hosted educational seminars, addressing three issues: • Growing institutional usage • Liquidity access • ETF execution Gary Stone, Chief Strategy Officer, discussed ETF market structure, trends and usage while Mike Baradas, the Product Manager for Cross Asset Strategies and ETF Liquidity Solutions, and Kapil Phadnis, Tradebook’s Global Head of Quantitative Research, discussed Liquidity and Execution. read more

Shifting Sands – the harsh realities of executing in today’s markets

Will Winzor-Saile, Fidessa

Mar 10, 2015
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The electronic execution landscape has undergone a slow but steady transformation over the past decade. Increasingly seen as a commodity, execution infrastructure provides essential functionality without which it would be impossible to operate, but few brokers see it as a means of gaining any real advantage over their rivals. Today’s differentiators are found higher up the chain; sophisticated algos, execution consulting capabilities and other innovations that sit on top of the execution infrastructure. read more

Risk technology: spend your budget on the carrots, don’t waste it on the stick

Anthony Pereira, Percentile

Mar 09, 2015
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Anthony Pereira, CEO of Percentile, specialists in risk technology for financial services, examines the Basel III interim findings which see the industry falling short   The financial crisis exposed a number of weaknesses in the financial industry’s ability to assess, realise and mitigate risk on a very public scale. The knock-on effect of this exposure has been, and continues to be, vast with financial institutions being subject to heavy scrutiny from regulators. The expectation on banks to demonstrate increased transparency and the ability to effectively manage their risk has intensified substantially. read more

A breath of fresh AIR 2.0

Steve Grob, Fidessa

Mar 06, 2015
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I was lucky enough to be invited back this week to Franklin Templeton’s annual Alpha Innovation Required summit. Basically it allows new tech firms to pitch their wares to our industry and then fosters debate and discussion about the cutting edge of IT in finance. It’s also a heck of a lot of fun too. What is interesting is how we solve for the compulsion/repulsion syndrome with new technology in finance. On the one hand, there is so much really cool stuff going on with mapping big data, analytics and user interfaces. read more