Understanding the complexities of sell-side order routing is an on-going challenge for asset managers, according to Ari Burstein, senior counsel for US buy-side trade body the Investment Company Institute (ICI), who will moderate a panel session on the subject in New York on Thursday.
The session will take place at an ICI conference featuring Commodity Futures Trading Commission (CFTC) commissioner Scott O’Malia, heads of top US exchanges and well-known industry figures from the buy- and sell-side.
Burstein, who also represents ICI’s international counterpart ICI Global, said the event was unique in chiefly represented asset managers’ concerns.
“We're going to focus on issues that are specific to the buy-side that are not often discussed or that haven't been discussed from a buy-side point of view,” he said. “We've assembled a group of key individuals across the buy- and sell-sides, exchanges and regulators to explore these topics.”
Burstein will moderate a session exploring how brokers route orders, an issue that has attracted buy-side attention in recent years.
“The routing of buy-side orders can be impacted by a number of factors including rebates, exchanges' access fees and the internalisation of order flow,” he said, stressing the importance of discussing such issues from a buy-side point of view to improve industry practice.
“Increased transparency and greater buy-side education about order routing are two things to consider when discussing how to potentially change behaviour among market participants,” he said.
The event, in its 14th year, will also feature a session where past and present directors of the Securities and Exchange Commission’s Division of Trading and Markets will explore issues in today’s regulatory environment.
Burstein said discussion will focus on current issues, such as the suitability of current regulation for today’s market structure.
Other sessions include addressing problems specific to small- and mid-cap stocks, dealing with operational risks and improving investors’ understanding of markets to better inform decision making.
For the event programme and to register, visit www.ici.org.