Larry Tabb – Algo wheels help buy-side firms automate their algorithmic workflow and rationalize their usage of broker algorithms. The wheel not only simplifies the difficulty of allocating order flow to a specific broker, it also helps the buy-side trader ascertain the quality of the broker’s algos given differing liquidity patterns and trading situations. … When used for best execution a broker wheel pits similar algorithms against each other using A/B-type testing strategies. … Normalizing disparate algorithms to measure performance and ensure best execution are the algo wheel’s killer application. … But algo wheels don’t guarantee best execution by themselves. … As algo wheels gain traction, TABB Group sees buy-side firms supporting two different types of tools. The first set includes more generic algorithms that fit into an algo wheel, which will be used for more traditional VWAP, TWAP, IS, or dark accumulation strategies; and the second set contains those more customized algos that will be tailored to specific situations. … Increasingly, the buy-side trader’s job will be focused on ascertaining the appropriateness of using a wheel, and those times when a more specific and customized tool will provide a better outcome.
Dan DeFrancesco – With Cash Management, uninvested cash will be moved to program banks, which will offer insurance from the Federal Deposit Insurance Corp.
Aziz Abdel-Qader – Chicago-based Trading Technologies International, Inc. (TT) is now offering connectivity to the Johannesburg Stock Exchange (JSE), the largest stock exchange in Africa, via its TT® platform.
Sean Sullivan – How prevalent is it? A study conducted by research consultancy Opimas predicted that by 2020, 20% of buy-side firms with more than $50 billion AUM will outsource some portion of their trading operations.
Lynn Martin – “With this expansion, MSCI will license and integrate ICE Data Services’ market leading fixed income pricing and reference data into MSCI’s products and services,” says Diana Tidd, Head of Index at MSCI. “MSCI and ICE have developed a strong relationship over the past decade, and we look forward to providing our clients with more access to ESG and fixed income data and tools.”