With the recent rebranding of Kepler Cheuvreux Execution Services into KCx, and an array of dynamic new algos to refine its offering, the firm has evolved into a heavy hitter in the global execution arena. Chris McConville, head of execution services and trading at Kepler Cheuvreux, gives detailed insight into the firm’s evolution – and reveals some exciting new plans for the future.
What has the journey been for Kepler Cheuvreux over the last two years?
Over the past two years, Kepler Cheuvreux has evolved from being a regional European broker to a significant player in Global Execution. To signal this transformation, one of our initial steps was rebranding Kepler Cheuvreux Execution Services to KCx. This marked the beginning of our new execution strategy for the following five years.
Subsequently, we have undertaken a comprehensive investment, spanning multiple years across all facets of our execution division. This investment encompasses various areas, including product development, innovation, resource allocation, and service.
The past two years have been both demanding and exciting.
How is KCx promoting a global perspective for execution in today’s marketplace?
At KCx, we firmly believe in global perspective complemented by local presence. To achieve this, we have established a global network of 13 major financial hubs across the US and Europe.
The close proximity of our front office teams to local markets has fostered the development of a robust network of domestic investors. Our global reach is further bolstered by strategic partnerships worldwide.
This strategy has yielded favourable outcomes. Our clients appreciate our high crossing rates and the ease of accessing local liquidity.
Moreover, our multi-local setup enables us to gain valuable insights into the characteristics and challenges of each market. This deep understanding empowers us to adopt a more tailored approach, addressing the specific needs of local participants.
What developments are we seeing in the algo space that are helping you to service your clients better?
Our clients demand innovation, agility, and swift solutions. Through our Customisation Framework, we deliver on their expectations by offering tailored strategies that align with our client’s specific needs and preferences. This adaptability allows us to effectively address trading objectives, risk profiles, and regulatory requirements.
Recent advancements in our Execution platform have introduced enhanced transparency and analytics capabilities, providing clients with greater insight into their trades and execution performance. Armed with comprehensive data analysis, clients are empowered to make more informed decisions and optimise their trading strategies accordingly.
Our priority is to listen to clients and promptly respond to their requests, ensuring that their needs are met with precision and efficiency.
How is Kepler Cheuvreux/KCx leading in terms of algo innovation?
We continuously enhance and refine our algorithmic trading strategies to leverage the latest technological innovations, shown by our recent introductions like DynVWAP and Flow Aggregation. Our algorithms are designed to adapt dynamically to changing market conditions, optimise execution performance and minimise market impact, even during important liquidity events such as MSCI rebalances.
Recently, we launched our flagship algorithm, Pulse, which serves as our liquidity-seeking algorithm with a focus on Arrival Price. Pulse strategically prioritises non-displayed venues to source liquidity and optimise performance.
How is Kepler Cheuvreux/KCx unlocking trading intelligence through the use of analytics?
Last year we introduced our KCx API Analytical Suite. This innovation enables clients to access our forecasts and analytics tailored directly to their strategies.
Through our API, we give access to the same technology and quantitative intelligence utilised in our own trading engine. The aim is to enhance transparency and equip clients with actionable insights that can improve the workflows and strategies of trading desks and portfolio managers.
As an example, clients are currently utilising our API to receive close auction forecasts while trading with our TargetClose algo.
Leveraging an API offers a broad spectrum of opportunities for data sharing in a highly flexible and agile manner, removing the need for additional software or broker portal access. By eliminating such requirements, we streamline processes and foster greater efficiency.
How important are people to your progress, and how do you support and promote diversity of talent?
People and talent acquisition are the cornerstone of the development and delivery of our strategy. Within a remarkably short time span, we’ve rolled out a significant number of products, with more innovation in the pipeline. This achievement is attributable to the dedication and hard work of our teams. It’s imperative that all teams contribute to shaping the strategic roadmap and specifications, with Front Office involvement in both the building and testing phases. We’ve reduced silos to promote seamless collaboration.
In the past two years, we’ve expanded our talent with seasoned professionals and fresh talent from diverse professional backgrounds and areas of expertise. We feel forming diverse teams is essential for creating a truly vibrant and inclusive culture that drives innovation and encourages collaboration.
What is your outlook for 2024/25 and what milestones are you working towards over the coming year
Our outlook for 2024 and 2025 is very optimistic. We prioritise delivering innovative solutions to address the needs of our clients while assisting them in navigating forthcoming market structure and regulatory changes. One of our key objectives for the upcoming year is the launch of our next-generation execution platform, to further improve order routing and execution methods.
For instance, we would like to offer execution access to the Middle East, and Low Touch access into Asia. Naturally, we will also support clients in adapting to the forthcoming US T+1 regulatory change.
Moreover, we will enhance our offering with the introduction of our second liquidity-seeking algorithm alongside Pulse. The new algorithm is engineered to elevate our liquidity sourcing capabilities, especially for small-sized orders, facilitating swifter execution. This will empower clients to navigate challenging liquidity situations with increased precision and efficiency. 
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