EM explosion: The numbers tell their own story

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April 24, 2024

Emerging markets are seeing extraordinary growth – although accessing them comes with its own challenges. The returns are well worth it, however, with markets such as Saudi Arabia and India delivering big numbers – and big ambitions.

There has been significant growth across emerging markets in recent years, especially India and the Middle East, where the figures speak for themselves.

Sandeep Sabnani, head of equities product strategy and growth at ION Markets, pointed out that the NIFTY 500 has grown 249% since 2013, translating to around 27% year on year over the past nine years. The Saudi region has also grown by around 29% a year. Comparatively, the US has grown by around 14.5% annually, and the UK by around 5.4%. Or on another metric, the Middle East and India had around 48 IPOs each last year, while the US had around 154 – and the UK, just 23. The liquidity and primary market challenges in the UK and Europe have of course been much-discussed, but flows are not just headed State-side – emerging markets are on the up.

Saudi flow

In Saudi Arabia, the stock exchange has big ambitions. Algo trading now accounts for over a substantial amount of order flow, and the platform has introduced an array of additional services over the past couple of years to attract HFT and algo trading clients through its doors – including colocation facilities and cancel-on-disconnect services. The exchange is also making a push towards

“In Saudi we are aiming to diversify our investor base to increase more listings, and create more products and services for different types of clients,” confirmed Fahad Al Ammari, head of cash markets development at Saudi Exchange.

“We are definitely looking to increase algo flows. Market making is another big thing, a d activity is increasing, especially in the equity market. These services are ensuring the growth of liquidity.”

Around US$3 billion is now traded on the Saudi market every day now, with nearly all securities on the market traded daily. “This year has been amazing, and this is our focus,” said Al Ammari. “Diversify the investor base, increase listings, and become one of the biggest exchanges in the world. We are currently the ninth largest in terms of market cap. We have aspirations to be bigger.”

Walk before you run

However, while they might offer enormous opportunities, they also bring their own challenges.

“It feels like it’s at an inflection point now,” said Joe Collery, head of trading at Comgest. “But as a desk, you have to look at your set-up – there’s a lot of work you need to do.”

“You need to have a set of trusted technology to make sure you are comfortable and don’t open yourself up to risk when trading in emerging markets,” agreed Sabnani. “We’re seeing more players trying to get into these markets, and tech gives you a solid foundation to base your business on.”

Crucially, many emerging markets may have different trading hours, different public holidays, and require different coverage – and you need systems and services from brokers to support trading during these special hours.

For example Matt Cousens, head of equities EMEA at BestEx Research, recalled an instance some years ago when, carving the Turkey at 2pm on Christmas Day, he had to take a phone call… about a trade in Turkey.

So should traders try and ensure they have coverage for all market hours in all markets they trade in? Covid has changed work/life balance to make it easier to work from home, which lifts some of the burden. But even so: “If you have significant positions in any of these areas, it’s your responsibility. Organise your desk appropriately,” said Collery. “You’re the eyes and ears of the PMs. These markets do tend to interrupt the normal Monday to Friday focus.”

Familiarity with local brokers is also important, especially as most of these markets have over 90% local investors. “Brokers certainly have a role to play,” agreed Sabnani. “Not having that support isn’t really an option.”

“It’s the whole process, it’s not just a PM idea. Until it’s in your books it’s not there. There’s the trading element, the FX element, the settlement – it’s the whole cycle, and you need to put systems in place for smooth and straight through processing before you can really think about entering the area,” concluded Collery.

“PMs might have the idea, but it’s important to give them a realistic roadmap to invest in these regions.”

‘We’re all part of the problem’: Solving Europe’s liquidity crisis requires an embrace of all options

By

Lucy Carter

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April 24, 2024

Marc Wyatt, head of global trading, T. Rowe Price

It’s no question that the liquidity landscape in Europe is not in the best state, but how did we get here? And how can we get out? Marc Wyatt of T Rowe Price warns that there will be no “big bang” solution, but it’s everyone’s responsibility to work towards a constructive evolution of the markets. Read on for a download on TradeTech’s liquidity conversations.

Individual changes may make some difference to the liquidity landscape, but there needs to be an understanding of the underlying issue in order for meaningful improvements to be made, according to Rupert Fennelly, EU head of equities electronic trading and sales at Barclays.

The last 20 years have seen considerable consolidation on the buy side, he continued, resulting in fewer viewpoints in the market. Other large changes have included the consolidation of hedge funds, which Fennelly stated now have a more sell-side approach and are trading less aggressively, and enhanced sell-side competition to include new algo functions and provide better performances. “These things will not change,” Fennelly

Rupert Fennelly, EU head of equities electronic trading and sales, Barclays

affirmed. “We have to live with them.”

From a buy-side perspective, “we’ve had to innovate with the marketplace”, reported Marc Wyatt, head of global trading at T. Rowe Price, and be more judicious with allocation of time and attention. Budget constraints are limiting innovation, he added, with the majority being spent on regulatory requirements. Top-of-house initiatives are the next priority, followed by the practicalities of “keeping the lights on”. These pressures will prevent small and medium firms from keeping pace with innovation, he explained, negatively impacting investors who need to use both small and large firms.

Panellists disagreed on exactly what stage the industry was at when it comes to innovation in the liquidity space. Sam Railton, managing director of business management for EMEA at Tower Research Capital Europe, stated that there has been a recent shift in attitudes towards and an understanding of alternative trading platforms. However in spite of these attitude changes, Simon Dove, managing director and head of liquidity for EMEA at Instinet, stated with certainty that “we’ve hit a crossroads”. He emphasised the need to make EMEA more appealing to international investors, especially at a time when the UK is seeing increased delistings.

Considering whether dark trading is a threat to liquidity, “I don’t think there are any concerns,” Dove affirmed. “We’ve welcomed it for a long time.” Similarly, Anish Puaar, head

Simon Dove,managing director and head of liquidity for EMEA, Instinet

of European equity market structure at Optiver, noted that “bilateral trading is not new”. However, he added, the industry is now taking the approach one step further with the introduction of automated trading between market makers and buy-side firms. “It’s a gradual shift, but it’s happening,” he affirmed.

Despite their recent success, Fennelly questioned whether bilateral block mechanisms will be able to maintain their liquidity offerings in the face of market shocks, given the fact that they have emerged in a subdued environment.

Attention was drawn to the need to print dark prices on EU tapes, following the US format. Chris Jackson, head of equities for EMEA at Liquidnet, explained that while lit markets often misprice assets, values on the dark markets “create the concept of fair value”.

Puaar assured that Optiver is not trying to overtake other execution methods, but is instead offering an alternative in the low-liquidity landscape; “not everything can be forced onto lit, dark and public markets,” he commented. This was a view broadly held by those on the panels, who acknowledged the importance of having multiple options available.

Jeremy Smart, global head of distribution at XTX Markets, agreed that optionality is vital for the market. “We’re not backing away from trading on venues,” he explained, but added that in the currency landscape lit market toxicity is a significant issue. With a lot of flow filtered out before it hits venues, he explained, “exchanges become a form of exhaust for the market”.

However, James Baugh, managing director and head of European market structure at TD Cowen, warned that although any method that plugs the liquidity gap will be accepted, the long-term impact on the market and on how liquidity levels are perceived by international investors needs to be taken into consideration. Following an audience question on the use of private rooms for trading, he responded that this would not create a fair and equitable environment. If business is taken away from public markets and less liquidity is visible, he argued, the market could end up damaging itself.

Eric Stockland, managing director and co-head of global electronic trading at BMO Capital Markets, believed that the market will “self-correct for the right amount of volume trading light, dark and periodic. It’s hard to say how much liquidity is too much off-exchange, but I think that market forces will solve for it in the long term”.

“This is always going to be an evolution,” Wyatt acquiesced. There is no single, immediate solution for the liquidity crisis in Europe – experimentation will be required. “One size does not fit all,” affirmed Dove. The industry needs a range of trading mechanisms to be available, and ultimately “the pie will grow together”.

©Markets Media Europe 2024

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Buy don’t build as budgets falter, industry advises

By

Lucy Carter

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April 24, 2024

Oskar Wantola, head of listed execution technology at Man Group

The buy-versus-build debate is everlasting, but industry sentiment seems to be leaning towards the former – with caveats. Adding on to off-the-shelf products may be the way forward, allowing firms to customise their offerings and differentiate from others. Read on for more of TradeTech’s discussion on the topic.

Although choosing to buy rather than build won’t fulfil all of a firm’s required functionalities, industry sentiment seems to suggest that it’s a more economically worthwhile choice than building systems in-house. Multi-asset OEMSs want, of course, the best functionalities, Oskar Wantola, head of listed execution technology at Man Group, affirmed. This is more efficiently achieved by using an off-the-shelf model and adapting it to fit specific needs. The focus should stay on value-add in these cases, Kevin Convington, chief consulting officer at Adaptive, said, with third parties relied on to do the heavy lifting that new systems require.

In order to adopt this approach, there needs to be more standardisation between vendors and technology, Wantola continued. The gap between buy and build needs to be reduced, with clients able to build on top of bought-in models.

Currently, there is not enough flexibility in OEMSs to allow for additional tools to be created on top of existing platforms, Daniel Stauning, head of trading at Nykredit Asset Management, said. Interoperability is key, and as Medan Gabbay, chief revenue officer at

Quod Financial, stated, “vendors do not operate in isolation”. As such, the lack of collaboration across the industry needs to be addressed. Gabbay advocated for asset managers to consider what their goal for change is and determine target workflows before constructing best-of-breed solutions through vendor collaboration. A similar sentiment was held for asset managers considering adopting multi-asset OEMSs; the most important thing to do is to speak to others in the industry, panellists agreed, working together to enhance the industry as a whole.

This may raise questions of differentiation – how can clients or vendors stand out if they’re working in tandem?

Wantola went on to emphasise the benefits of coding capabilities across companies, with Python being used across Man Group to build between EMSs and OMSs. The functionalities this unlocks cannot be accessed through a rule-based approach, he explained. Andrew Kovacs, director of product, EMEA, at Charles River, agreed that the future of OEMS systems is coding. He added that Charles River wants clients to lead discussions when it comes to making systems as flexible and interoperable as possible, an opinion that Gabbay and Kovacs shared.

Vendors cannot innovate without client input, Gabbay added, emphasising the symbiotic relationship between provider and client. It’s important for a firm’s long-term strategy to be established from the outset, speakers agreed, particularly given the fact that OEMSs are expected to last for several years. “The relationship goes beyond vendor and supplier,” Convington stated; there needs to be a strong sense of trust from the get-go.

Quintus Kilbourn, head of equities at Absa, agreed that establishing these long-term relationships is crucial, in part because changing vendors is an arduous and expensive process.

With regulatory and compliance costs on the rise, buying rather than building becomes even more appealing, reducing pressure on the IT budget. “Regulatory change could be an opportunity or a challenge,” Kilbourn noted, with those who have their finger on the pulse able to take advantage of upcoming changes. On the other hand, though, if regulations aren’t exactly what teams anticipate then they may have to reassess their approaches. Either way, leaving space in the budget for new developments is vital.

When bluntly asked whether buy or build was the best way forwards, ‘buy’ emerged as a clear winner. “Build sounds great on paper, but it’s a lot of work,” said Kovacs. It was agreed that buy should always be the first choice, with build used to enhance these existing services.

©Markets Media Europe 2024

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TradeTech TV from Global Trading – Episode Two

By

Lauren McAughtry

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April 24, 2024

TradeTech TV Episode 2 – panel discussion and round up of Day 1 at TradeTech with Simon McQuoid-Mason, Simon Dove and Scott Charity.

TradeTech TV: Buy-side insights with Joe Collery

By

Lucy Carter

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April 24, 2024

Joe Collery, head of trading at Comgest, talked to Laurie McAughtry on the importance of supporting the next generation of talent and why we need to get behind the rising stars of our industry.

TradeTech TV: Buy-side insights with Lynn Challenger

By

Lucy Carter

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April 24, 2024

Lynn Challenger, global head of trading, UBS Asset Management

Lynn Challenger, global head of trading at UBS Asset Management, catches up with Laurie McAughtry as he comes off stage from his keynote speech, to talk about the importance of digitisation, why Excel is fast food, and his belief in architecture over functionality. Tune in to catch up on his keynote speech if you missed it!

‘We’re nowhere near peak ETF’, but Europe needs to catch up with the US

By

Lucy Carter

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April 24, 2024

Ben Miller, vice president of ETF specialist sales for EMEA, Citi Group

ETFs are increasing in popularity, but is the European market keeping up with the demand? The US is setting an example that Europe should follow, according to Citi Group’s Ben Miller, but market fragmentation remains a key issue. Read on for more on TradeTech’s ETF discussion.

ETFs are facing two main challenges: fragmentation and regulation. So said Simon Barriball, EMEA ETF and portfolio trading at Virtu Financial. Along with each ETF having multiple listing and reporting structures differing across venues, the upcoming impact of the US move to T+1, double listings post-Brexit and low liquidity across European exchanges, regulation is set to intensify. Barriball voiced his disagreement with the expected CSDR Refit fine increases, which he called “disproportionately large”.

Simon Barriball, EMEA ETF and portfolio trading, Virtu Financial

On top of that, although a European consolidated tape is finally in development, there’s no focus expected on ETFs, he continued. Although ETFs are rising in popularity, there are a number of hurdles they still need to overcome.

To do so, Ben Miller, vice president of ETF specialist sales for EMEA at Citi Group, advised that Europe should adopt some structural change from the US’s ETF approach. He advocated for a dominant exchange, currency and clearing system to be agreed on, along with a centralised tape and centralised clearing time, in order to improve European fragmentation. The structure of European cash equities was also upheld as a model, providing more choice for traders.

He went on to say that while Europe has had similar success to the US when it comes to institutional adoption, the US has had considerable more retail uptake. This is something Europe needs to emulate, he argued, in order to improve the ETF landscape.

Exchanges are adapting to deal with increased ETF demand, which David Smith, head of ETF sales at SIX Swiss Exchange, said includes launching on-exchange RFQs and

David Smith, head of ETF sales, SIX Swiss Exchange

encouraging education in the space. With increased ETF algos on screen, he explained, the right functionality is needed to allow for market growth.

Returning to the everpresent theme of Europe’s liquidity problems, Barriball reported that the majority of the market is looking for organic growth without regulatory interventions. Exchange initiatives are one way that this is being achieved, along with algo development in the broker community, he said.

However, he acknowledged that some are keen for regulators to step in and introduce a trade-through rule. While this would improve liquidity, the required technology and monetary investments to achieve it are likely to discourage many market participants.

Tim Miller, senior trader, Fidelity International

All in all, the European ETF ecosystem needs time to grow, Citi Group’s Miller said. Currently, Tim Miller, senior trader at Fidelity International, stated, the industry is currently at an “inflection point” when it comes to ETFs. Technology is developing to solve problems intrinsic to European ETFs, he said, filling gaps in the infrastructure and increasing flow on exchange. This, in turn, will prompt growth in the ETF market, he assured; “the little bits of the jigsaw are coming together”.

©Markets Media Europe 2024

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Unpicking algos, data and human behaviour

By

Alex Pugh

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April 24, 2024

At Tradetech 2024, conversation revolved around how to determine which algo to utilise given the range of investment strategies and asset classes.

Aviva Investors global trading analytics manager Ash Sharma said the firm utilises different TCA vendors for each asset class. “I think traditionally when vendors come into the market, they focus on one or two of the asset classes. But now we’re seeing a lot of the vendors branching out into other asset classes converging. Down the line, I think the optimum scenario is to have one vendor that covers all the asset classes we trade.”

Phil Lemmon, head of EMEA Sales, ISS LiquidMetrix, said clients just want an answer to the question, What is the appropriate algo? “There is really no straightforward answer. It depends on market conditions.”

Lemmon likens an algo to a black box. “To a buy side trader, they have a high level of understanding of how it works and how it interacts with liquidity in the market. But the most important thing to understand is how it behaves, each algo behaves under different market conditions. You need to know which algo is going to yield the best results. Only then can you tie it in choosing the right algo and the right strategy to your investment objectives. That’s really the question we are trying to answer for our clients.”

BMLL’s chief product officer Elliot Banks thinks algo selection rests on getting high quality data. Determining which algo is best “all starts with good input from a market wide perspective.”

Questions around liquidity, context, which algo, if you have good quality data, that allows you to build out from there, Banks said. “It’s not TCA or algo execution or algo monitoring for the sake of it, it is actually value add, it is adding alpha into your whole process. That is where a lot of firms are taking it, moving away from a purely box-ticking exercise.”

Data insights

LSEG handles 10 billion rows, including trades and quotes, of data every day. Every year, the figure stands at 6 trillion rows of data. “That amounts to around 50 petabytes of data that is stored in our database,” LSEG’s Harish Komalam Gopalakrishnan, director, tick history product and PRS solutions, said.

This data is fragmented and sourced from different exchanges, and consolidating and normalising it is key, as well as having a platform where it is accessible and available.

“Think about the amount of storage that you need to process this data. People are spending millions every year on an average to large scale mine; they spend at least 10 million on storing and processing the data. We are removing that burden of processing and storing the data, making it available in a shared storage, like in AWS, as well as in GCP. So, that is actually making a difference in the space.”

Given all that, how do you convert this hosepipe of data into better outcomes? Each line requires context and colour.

Joe Collery, head of trading at Comgest, thinks the responsibility lies with the firm and its team to add that context around the order. “You have to have the facilities to add colour around the order.”

“This trader, actually, unbeknownst to the trader, is quite passive, and is that effective? They may not have noticed his unconscious bias and then another trader could be more aggressive, is that effective?,” Colliery added.

Behavioural analytics

The potential of behavioural analytics to understand market behaviour and decision-making processes is, to a certain degree, untapped.

In conversation, both Northern Trust’s senior data analyst Victoria Bryan and PGIM Quantitative Solutions’s chief investment officer George Patterson recommended adopting tools that can better analyse behavioural data and provide more actionable feedback to traders, without requiring an expert to interpret. This could be done by TCA providers or new vendors, Patterson noted.

Bryan highlighted the importance of understanding market decision-making and the impact of factors like sleep and meals on performance. Interestingly, it was looking outside of financial services that could provide the most insight – something that may be spurred by the influx of younger talent.

Both Bryan and Patterson anticipate younger generations entering capital markets to increasingly demand the use of behavioural data and analytics in investment processes, given its use in almost every other technological domain that touches data in some way or another.

“There are other industries that do this a lot [behavioural analytics] and they do it very, very well. I do feel like the financial industry is a little bit behind the curve when it comes to actual behavioural analytics because there is that nervousness around adoption. Ultimately, if you understand the market, understand the decision making, you can improve,” Bryan said.

©Markets Media Europe 2024

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‘European market structure is a disaster, but you can’t blame it for everything…’

By

Dan Barnes

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April 23, 2024

The potential for significant growth in European equity derivatives markets exists, say buy-side traders, thanks to developments such as T+1 settlement in the US, and potential retail growth, if key structural and regulatory hurdles can be overcome. Speaking at TradeTech in Paris, a panel of experts outlined the huge value that investment managers can realise through including derivatives within their portfolios.

“In the US growth has been driven by retail,” said Raphael Rochon, direct counterparty trading, at market maker IMC. “In 2020, 1.2 million options were trading on the S&P. Four years later, more than three millions options are traded. It’s gigantic and 70% of that growth is driven by retail. So, in Europe, we know that the potential is huge.”

On the institutional side, the US migration to a T+1 settlement cycle will also be a driver to increased use of derivatives use, said Tim Miller, senior trader at Fidelity International, as the difference between European and US settlement cycles creates funding problems for acquisitions of securities between the two regions.

Tim Miller, senior trader at Fidelity International.

“There’s a structural change with T+1 and that will increase use of futures just for cash equitisation, it is quick tool to get to market in changing sentiment on the underlying so I think that will lead to change in future use,” he said. We’ve also seen PMs particularly in multi-asset, who are looking to reduce some of the duration in those funds and get more liquidity. So there’s definitely a change.”

He noted that in order to support greater use internally, particularly for portfolios managers who lack understanding of derivatives, the firm is building out a working group of people from different teams to look at its overall derivatives usage and to consider where they can add some extra value to a fund.

This was a potentially invaluable development that other buy-side firms could follow, said Eric Boess, global head of trading at Allianz Global Investors, because institutional investors were often not optimising their use of derivatives or exploring their potential.

“European market structure is a disaster – it doesn’t need to be discussed – but you can’t blame it for everything,” he said. “It holds back some of the market making activities but I think institutional Europe is actually pretty bad when it comes to the use of derivatives. Institutional investors already are held back here because for example they might be a fixed income portfolio manager who can’t use fixed income ETFs because technically that’s an equity instrument. Stuff like that takes a while to address. The problem is, what I call ‘Bismarck’s Curse’. Every European sovereign tells its citizens that the government will take care of its pension. You don’t have the equivalent to 401K plans.”

As a result, he noted that restricted interest in and activity of trading securities directly in support of pensions.

While Allianz GI has a longstanding derivatives trading culture, one solution that T. Rowe Price has developed is a centre of excellence for running derivatives investment and trading, run by Matt Howell, global head of derivatives and multi-asset trading at T. Rowe Price.

Matt Howell, global head of derivatives and multi-asset trading at T. Rowe Price.

“About seven years ago, I was asked to stand up a centre of excellence at T. Rowe to help us manage derivatives on the platform,” he said. “Essentially, my team acts as that ‘Centre of Excellence’ to the rest of the organisation, thinking about all aspects of derivatives from investment, idea generation, implementation through the trading technology stack, and then all the way through to your middle and back office functions, including collateral management and analytics. That was stood up to support the phenomenal growth we’ve seen in derivatives across asset classes. Since 2014, essentially 10x in notional traded and we continue to see that expand across all of our investment verticals.”

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Kepler Cheuvreux: Global perspective, local presence

By

GlobalTrading

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April 23, 2024

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.

www.keplercheuvreux.com

*Industry Viewpoints comprise sponsored content and do not necessarily reflect the views of the editor.

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Emerging markets are seeing extraordinary growth – although accessing them comes with its own challenges. The returns are well worth it, however, with markets such as Saudi Arabia and India delivering big numbers – and big ambitions.

Joe Collery, head of trading at Comgest, talked to Laurie McAughtry on the importance of supporting the next generation of talent and why we need to get behind the rising stars of our industry.

ETFs are increasing in popularity, but is the European market keeping up with the demand? The US is setting an example that Europe should follow, according to Citi Group’s Ben Miller, but market fragmentation remains a key issue. Read on for more on TradeTech’s ETF discussion.

At Tradetech 2024, conversation revolved around how to determine which algo to utilise given the range of investment strategies and asset classes.

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