MSCI urges investors to consider ESG in decisions BuySide

MSCI urges investors to consider ESG in decisions Liz Kiesche, SA News Editor - "Portfolio managers should integrate ESG in portfolio management, including security selection, portfolio construction, risk management, performance attribution, and client reporting." MSCI Website MSCI Principle's Of Sustainable Investing
SEF Trading Stumbles to End the Year BuySide

SEF Trading Stumbles to End the Year Colby Jenkins TABB Group - "Taking all of this into account, 2019 was nonetheless an up year for SEF trading (Exhibit 4, below). Compared to total notional volume traded two years ago, notional SEF activity has grown by just under 40%, or roughly $58.15 trillion, since 2017 – primarily driven by the IRD market. With a significant slowdown in IRD SEF trading over the past quarter, though, 2020 is already shaping up to be a year of further departure from the SEF market status-quo."
InfoReach Includes Algo Wheel with TMS ArtificialIntelligence

InfoReach Includes Algo Wheel with TMS InfoReach TMS Algo Wheel includes: Broker and algo selection backed by machine learning Best execution reporting Improved performance Decision making based on  Historical performance with a variety of benchmarks Commission schedules and commitment levels Which broker has received orders in the same instrument TMS’s Algo Wheel is an excellent option for many buy-side teams. 
What is Liquidity? BuySide

What is Liquidity? Phil Mackintosh "There is an entire industry dedicated to collecting and computing trading costs. The data overwhelmingly show that transaction costs are falling, and that U.S. costs are the lowest in the world." Article originally seen by BizTT editor on Tabb
Blockchain for the Buy Side Blockchain

Blockchain for the Buy Side Monica Summerville TABB Group - "The areas of significant benefits in using blockchain-based solutions were overwhelmingly cited as improved clearing and settlement as well as increased operational efficiency. The areas in which respondents said blockchain would have a significant impact over the next five years were: Fees and costs. Compliance and regulation. Data management." Mutual fund giant Vanguard has partnered with Nasdaq Ventures-backed blockchain startup Symbiont to develop a trading platform for the $6 trillion currency market, the companies said.
Outsourced Trading Goes Viral BuySide

Outsourced Trading Goes Viral Michael Mollemans TABB Group - "Beyond the basic features of outsourced trading services, many firms try to differentiate themselves by emphasizing services such as technology and analytics, access to a wide broker network, regulatory reporting, flat monthly fee pricing options, prime brokerage services, and more. While the firms that have been providing outsourced trading services for many years argue that they benefit from experience, newer entrants in the space say they gain from leapfrog effects in trading and process technology"
Two Sigma launches portfolio risk management solution for institutional investors BuySide

Two Sigma launches portfolio risk management solution for 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 BuySide

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 BuySide

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 BuySide

Meet Your (Market) Maker: Europe’s 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.