Editorial Where the buyside and sellside meet Summer 2013 |
www.bestexecution.net
ASSET CLASS FOCUS: EQUITIES TRADING
TRADING: HFT ON TRIAL
DATA MANAGEMENT: TOO MUCH INFORMATION?
POST-TRADE: THE COLLATERAL MANAGEMENT GAME
BEST PRACTICE: PUTTING A LID ON BONUSES?
a new era TRADING SYSTEMS • PLATFORMS • TECHNOLOGY • REGULATION • MARKET INFRASTRUCTURE
Squires: dawn of
Paul J
Summer 2013 Managing editor: Lynn Strongin Dodds Publisher: Ian Rycott Commercial director: Scott Galvin Sales: Eradat Munshi
Contributors: Roger Aitken, Dan Barnes, Mary Bogan, Heather McKenzie, Maha Khan Phillips, Bob McDowall, Jannah Patchay
Photography: Chris Mikami /
www.mikami.co.uk
Design & production: Siobhan Brownlow, RSB design
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www.bestexecution.net Best Execution | Summer 2013
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 financial services industry as well as providing a more detailed insight into the technology driving new products and services being developed to meet these challenges. It’s where the buyside and sellside meet.
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ust when the markets looked like they were in full swing, high volatility returned. Equities spluttered while yields on 10-year US Treasuries jumped from as low as 1.7% in early May to 2.6%
in July on the back of Federal Reserve president Ben Bernanke’s comments that the days of quantitative easing are numbered. Throw in continued uncertainty over the Eurozone and sluggish growth from China, and nerves were once again jangled. However, recent events also served as a reminder that the
clock can’t be turned back. Costs will remain front and centre, with restructuring remaining the mantra. This is particularly true in the equities sphere which is our asset class focus for this issue. Many buyside firms are taking charge while sellside firms are sharpening their equity franchises to better meet the needs of their increasingly demanding client base. We look at the other key issues in this space such as outsourcing, market quality, market structure, execution services, DMA and the FTT. This issue also touches upon the other hot topics of the day
such as data management, high frequency trading and clearing and settlement. It is difficult to move anywhere in financial circles without hearing these two words – collateral management – but Maha Khan Phillips assesses whether the buyside are as prepared as they should be. Meanwhile, in the world of data management, Heather McKenzie assesses the pros and cons of outsourcing against the backdrop of onerous and costly regulatory requirements and Roger Aitken takes a look at the fate of the consolidated tape in Europe, and whether a more holistic approach can be found to the pricing of market data. The world may also look less friendly for HFT firms if other
countries follow the Bafin’s lead, according to Dan Barnes. The German regulator may be one of the first regulators globally to introduce HFT rules but many others are close on its heels. Most of Europe is also signed up to capping European bankers’ compensation wherever they are based. Mary Bogan looks at what the impact will be and whether it will limit the excesses or raise the base salaries. Whatever the outcome, a precedent will be set and performance will take on a new meaning.
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