Editorial Where the buyside and sellside meet Spring 2013 |
www.bestexecution.net Editorial
EXECUTION CONSULTING: WHAT ARE THE BUYSIDE BUYING?
Hans-Ole Jochumsen: planning ahead
ASSET CLASS FOCUS: FIXED INCOME POST TRADE: OTC DERIVATIVES BEST PRACTICE: THE HUMAN FACTOR MARKET SURVEILLANCE: BIG BROTHER
Spring 2013
Managing editor: Lynn Strongin Dodds Publisher: Ian Rycott Commercial director: Scott Galvin Sales: Joy Robinson Contributors:
Roger Aitken, Dan Barnes, Mary Bogan, Heather McKenzie, Maha Khan Phillips
Photography: Chris Mikami /
www.mikami.co.uk
Design & production: Siobhan Brownlow, RSB design
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www.bestexecution.net Best Execution | Spring 2013 1
Lynn Strongin Dodds, Managing editor
In these uncertain times and as the tide of regulation rises ever higher and wider, Best Execution offers an in-depth analysis into the major trends that are shaping the fi nancial services industry as well as providing a more detailed insight into the technology driving new products and services being developed to meet these challenges.
Ever since the New Year dawned, equity markets have confounded many by soaring to new historic levels. In late March, The Dow Jones Industrial Average hit a record of 14,559.65 while the S&P 500 jumped to 1,563.77, less than two points from its closing high in 2007. Is this irrational exuberance or simply traders tired of the unending tirade of bad news? The data emanating from the US is certainly better but there are still problems on the horizon with the recent near blow-up of Cyprus serving as a stark reminder of the eurozone’s woes. Not surprisingly, navigating the equity landscape is not such an easy task. Regulation has given birth to a fragmented landscape with dark, lit and broker pools. Best execution is paramount and it is not just about sourcing the deepest liquidity but employing cutting edge trading strategies. As a result, many buyside fi rms are turning to their sellside counterparts who are more than happy to help. Execution consulting may not be a new concept but it is one that is being honed and refi ned. It not only attracts and retains clients but can serve as a way to differentiate from the crowd Although we look at the technical dynamics we also explore the human factor as well as market surveillance solutions that have tried to curb some of the excesses. Mary Bogan assesses the physiological explanation of traders’ winning and losing streaks, and the highs and lows they engender, while Heather McKenzie looks at how fi rms are trying to catch any inappropriate behaviour before it hits the headlines. Dan Barnes looks at how vendors are gearing up for the changes in the derivatives market while there is also our Asset Class Focus on the world of fi xed income trading. Additionally we include a write-up of the fourth TCS Capital Markets Forum, which was held on March 1st in association with Best Execution and London Stock Exchange. Naturally it is very diffi cult to predict where markets will go, but the one thing that is certain is that the ride will not be boring.
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