Oct-Dec 2006, Issue 10

Betsy Anderson, head of centralised dealing at Resolution Asset Management, spoke to The TRADE about the benefits of building a centralised trading operation without the burden of legacy systems.

Brokers and vendors seem to have a clear idea of how the buy-side can best cope with desktop application clutter. Are buy-side trading desks on top of the challenge and do they share the confidence of their suppliers? (Richard Schwartz)

Risk trading remains an under-utilised resource. Toby Bayliss, alternative execution sales director at Citigroup, argues that clients are missing an opportunity and should look upon the brokers’ risk book as an additional pool of liquidity that can offer a cost effective and reliable trading solution.

Richard Balarkas, managing director and head of AES sales at Credit Suisse, explains how to be more than 50% of the traded volume and not move the price.

As technology extends the trading choices of institutional investors, Tony Mackay, managing director of Instinet Europe and Instinet Chi-X, argues that traditional exchanges are losing their raison d’être.

Brian Schwieger, head of EMEA Algorithmic Execution at Merrill Lynch, explains the role of data in defining and revising algorithmic trading strategies.

Owain Self Owain Self, executive director – equities, UBS Investment Bank, dispels the notion that dedicated algorithms are needed to trade lower-cap names

Is there a common understanding of what agency brokers can offer buy-side firms? Joseph M Velli, chairman and CEO of the BNY ConvergEx Group, believes not.

Today, it costs 50-times more to process and value an OTC derivative transaction than an equities trade, notes Paul Stillabower, head of business development, Europe, HSBC Securities Services. Without widespread adoption of ubiquitous standards in the processing and valuation of OTC derivatives, this situation seems set to continue. The industry is urged to take note.

One of the keys to a successful securities lending programme is an understanding of the requirements of both the beneficial owners and the service providers, writes Blair McPherson of RBC Dexia Investor Services.

As algorithms become a common ingredient in traders’ strategies, how will they gain a competitive edge? The answer, according to Dr John Bates, founder and vice president Apama Products, Progress Software and Mark Palmer, vice president and general manager, Apama, is to use an open algorithmic platform that allows traders to cook up their own algorithmic combinations.