April- June 2008, Issue 16

Following the mergers that created DnB NOR Asset Management, Johan Erikson was given carte blanche to build his ideal equity trading operation. Due to an astute blend of sell-side attitudes and buy-side trading tools, Erikson and his clients have been reaping the rewards ever since.

Brokers’ invitations to enter into the dark world of non-displayed liquidity are being greeted with caution, as buy-side traders assess whether the rewards are worth the risk of information leakage. Richard McClure

Richard Balarkas, CEO of Instinet Europe, reflects on how market volumes should rise exponentially if market structures adapt to new opportunities.

Chris Smith, head of business development for Euro Millennium and director of NYFIX International, explains why technology and trading innovations are leading Europe to new frontiers in equity trading.

George Andreadis, head of AES liquidity strategy, Europe at Credit Suisse, examines the role of advanced execution tools in limiting the potential for gaming and maximising the efficient execution of orders across light and dark venues.

The potential for gaming in dark pools can only be assessed by understanding the liquidity in each pool and an individual’s investment objectives, says Phil Allison, head of client trading and execution, UBS.

With Turquoise poised to start testing in August followed by ‘live’ roll out in September, many organisations appear woefully unprepared in terms of testing their back-, middle- and front-office systems. Not only are they missing an opportunity to reduce transaction costs, argues Jerry Lees, head of alternative execution at Cheuvreux, they are also falling short on delivering best execution.

François Banneville, head of execution services Europe, Société Générale Corporate & Investment Banking, takes stock of market structure expectations post-MiFID.

David Sher, managing director at ESP Technologies, examines the difficulties facing asset managers in achieving best execution for wrap accounts and how settlement aggregation tools can help fulfill their fiduciary obligations.

Buy-side desks in Europe are coming to terms with changing liquidity patterns. As they consider their order routing options, Chris Jackson, director, execution sales, Merrill Lynch International, lays out five questions that European brokers need to be able to answer.

Less media coverage and dwindling attendance at algorithmic trade shows suggests that equity algorithms are no longer hot news, writes Allen Zaydlin, CEO of Inforeach. However, the spotlight is merely starting to shift elsewhere, with the use of algorithms now being explored by traders in the derivatives and FX markets.

For maximum efficiency, buy-side traders should look to a strategic marriage of electronic and voice trading, contends William F. Cronin, managing director, Knight Equity Markets.

The London Stock Exchange’s new Specialist Fund Market gives alternative investment funds their first-ever dedicated public market. Encouraging alternative funds to float in London can only help strengthen the City’s position as home to a community that forms a growing element of the global capital pool, bringing benefits to investment managers and investors alike, writes Andrew Wallace, senior manager for the Specialist Fund Market.