Risk

The Case for Payment for Order Flow Data

The Case for Payment for Order Flow

https://tabbforum.com/opinions/the-case-for-payment-for-order-flow/ Larry Tabb - It is certainly not a good idea to only route orders to markets that pay the highest rebate or charge the lowest fee, but this is difficult to regulate. Firms are generally governed by best-execution policy, which in the US focuses on obtaining a price for the client order that is at, or better than, the best bid or offer in the market.
Survival of the Fittest: Modernizing Capital Markets Infrastructure Data

Survival of the Fittest: Modernizing Capital Markets Infrastructure

https://tabbforum.com/opinions/survival-of-the-fittest-modernizing-capital-markets-infrastructure/ Monica Summerville - A common approach to data architecture in financial services has been to utilize a data technology stack comprising a collection of approaches – for example, historic data in a relational database, recent data in a columnar database, and real-time data in some sort of event processing software engine. To obtain a consolidated view, connections must be made directly to various systems; an approach that gets increasingly complex over time.
Algo Wheels: Best Execution, Workflow Solution, or Both? Automation

Algo Wheels: Best Execution, Workflow Solution, or Both?

https://tabbforum.com/opinions/algo-wheels-best-execution-workflow-solution-or-both/ 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.
Royal London Asset Management Picks TradingScreen for Execution and TCA FrontOffice

Royal London Asset Management Picks TradingScreen for Execution and TCA

https://theindustryspread.com/tradingscreen-execution-tca/ Ricardo Esteves - In March 2019, TradingScreen launched its OEMS in Montreal. Going by the name QUO, the platform is designed for wealth and investment managers to add value to clients with a lighter touch OEMS that is easy to deploy and will simplify investment management processes. QUO is headed by Will Lawton, former executive at HSBC, Standard Chartered and RBS, who is based in Singapore and will focus on strengthening and extending TS’s QUO offering globally.
50 Trades of Grey: Shedding Light on Mobile Phone Use in Banks FrontOffice

50 Trades of Grey: Shedding Light on Mobile Phone Use in Banks

https://tabbforum.com/opinions/50-trades-of-grey-shedding-light-on-mobile-phone-use-in-banks/ Juan Diego Martín - The truth is that while there is no perfect policy when it comes to mobile usage on the trading floor, there is technology that can at least shed some much-needed light on this modern day grey area of risk for financial institutions.
MSCI to Strengthen Climate Risk Capability with Acquisition of Carbon Delta Data

MSCI to Strengthen Climate Risk Capability with Acquisition of Carbon Delta

https://business.financialpost.com/pmn/press-releases-pmn/business-wire-news-releases-pmn/msci-to-strengthen-climate-risk-capability-with-acquisition-of-carbon-delta Business Wire - Founded in 2015, Carbon Delta is a global leader for climate change scenario analysis. Together, MSCI and Carbon Delta will create an extensive climate risk assessment and reporting offering for the institutional market, providing global investors with solutions to help them better understand the impact of climate change on their investment portfolios and comply with mandatory and voluntary climate risk disclosure initiatives and requirements.
The Paradox of the Pre-Trade Cost Model Data

The Paradox of the Pre-Trade Cost Model

https://tabbforum.com/opinions/the-paradox-of-the-pre-trade-cost-model/ Robert Almgren - The most important consequence is the impossibility of distinguishing market impact from alpha. The trader sends a buy order because he or she anticipates that the market will rise; if it rises during execution of the buy order, was that because the execution pushed the market, or because the trader correctly anticipated the move? It is impossible to distinguish these two effects. Our model simply reports the combination of the two, assuming that whatever combination of alpha and impact prevailed in the past will continue to hold during future executions.
Eze partners with Tokyo Metropolitan Government in Japan’s resurgent hedge fund market Data

Eze partners with Tokyo Metropolitan Government in Japan’s resurgent hedge fund market

https://www.marketscreener.com/SS-C-TECHNOLOGIES-HOLDING-6098270/news/SS-C-Technologies-Eze-partners-with-Tokyo-Metropolitan-Government-in-Japan-s-resurgent-hedge-fund-29094191/?utm_content=20190821&utm_medium=RSS The Tokyo Metropolitan Government (TMG) has introduced the Emerging Manager Program, which includes initiatives such as operational cost subsidies for startups, real-estate accessibility following the hedge fund hotel mantra we saw in the U.S. in the past couple of decades, and more flexibility in terms of licensing for early-stage hedge fund managers-all with the idea of making it easier for a manager to seriously consider staying onshore instead of leaving to take their talents elsewhere. Additionally, to ensure hedge funds start off their operations on the right foot, TMG has launched a 'Qualified Outsourcing Provider ' program to steer managers to the most reputable and knowledgeable providers around the industry while still maintaining cost control through the government subsidies.