Two Sigma launches portfolio risk management solution for institutional investors

https://www.hedgeweek.com/2019/11/13/280434/two-sigma-launches-portfolio-risk-management-solution-institutional-investors

Users looking for more robust, portfolio level analytics can take advantage of Venn Pro, a solution that is offered on a SaaS subscription model and includes additional features such as custodial integrations and portfolio optimisation and special access to product specialists on the Venn team at Two Sigma.

Inside Outsourced Trading: The Buy-Side Perspective

https://tabbforum.com/opinions/inside-outsourced-trading-the-buy-side-perspective/
Michael Mollemans – “Further, the typical workflow, duties and responsibilities of buy-side traders are quite different from sell-side traders. Outsourced traders are mandated to be an extension of the buy-side firm and so buy-side trading experience can be very helpful. In fact, buy-side firms often insist that their outsourced trader have buy-side experience so that they understand the unique responsibilities of the role, and this is among the service offerings most valued by managers (see Exhibits 1 and 2, below). Outsourced trading firms understand this point and often hire only traders with buy-side experience.”

Greater Flexibility in Acquiring Research Encourages CSAs

https://tabbforum.com/opinions/sec-extends-no-action-relief-on-mifid-ii-greater-flexibility-in-acquiring-research-encourages-csas/

Christopher Tiscornia – “As we move forward, U.S. asset managers need to implement best practices to promote greater transparency and support the spirit of MiFID II and its unbundling requirements. These practices include:

  • Having a thorough, defensible process around research valuation and consumption.
  • Unbundling the trade execution decision from the research decision via the use of CSAs.
  • Providing transparent reporting of research funding, consumption, and value to asset owners and regulators.
  • Ensuring that the interests of managers and asset owners are aligned. Managers need to articulate how their research spending patterns, approaches to investing, and enhanced reporting processes are consistent with asset owners’ expectations.”

Meet Your (Market) Maker: Europe’s ELP SIs Gain Ground

https://tabbforum.com/opinions/meet-your-market-maker-europes-elp-sis-gain-ground/

Tim Cave – As Exhibit 4, below, shows, the future prospects for the ELP SI market are affected by a range of regulatory, operational and competitive forces. Taking all these factors into account, we think there is no reason why this market won’t continue to grow over the next 12 to 28 months. That said, the continued collection of data on ELP SI execution quality by brokers is likely to reinforce the consolidation of activity into the best-performing SIs, making it difficult for others to survive.

Buy-Side Trend Watch: Harnessing Alpha With Innovation

https://tabbforum.com/opinions/buy-side-trend-watch-harnessing-alpha-with-innovation/

Wayne CurryBespoke dashboards that mingle internal and financial data, visualize ideas, and share the results across the firm can also enhance the scalability and productivity of the idea generation process. This strategy boosts capabilities and delivers transparency more efficiently.

Unintended Consequences: Shrinking Sell-Side Research

https://tabbforum.com/opinions/unintended-consequences-shrinking-sell-side-research/

Douglas ChristensenTransparency has led to cost pressures and a reduction in research spending, which has had the unintended consequence of brokers and banks scaling back on the cost of coverage and ultimately has led to diminished output of published research.

Why You Are Probably Using the Wrong Technology in Capital Markets

https://tabbforum.com/opinions/why-you-are-probably-using-the-wrong-technology-in-capital-markets/

Steve Grob – Some firms have already seen the writing on the wall. Hg’s Director of research, David Toms, points out that Goldman Sachs has increased its spend on technology by 48% while simultaneously reducing staff expenditure by 13% over the past 5 years.