Equities trading focus | Execution services | Ian Peacock A new look
Ian Peacock, UK CEO and global head of execution services at Kepler Cheuvreux talks to Best Execution about its new offering.
Has best execution improved since MiFID? It is hard to measure the overall best execution in the marketplace since no general measure exists. However, I think MIFID has greatly improved best executions because now there is an industry standard for execution monitoring and transaction cost analysis. This was not the case before MiFID. Trading desks now have a greater focus on placing and monitoring orders and the control is enforced by market authorities. Greater attention is also paid to reporting.
What do you think the impact of MiFID II, and other regulation will have? If you look at what has happened, the market has developed at such a pace, that regulators are addressing issues that were not there pre-the original directive. MiFID II is far from being implemented and it comprises two elements: regulation which should be applicable around mid-2014 and a directive not to be enforced before 2016.
Best Execution | Summer 2013 There are six directions that
focus on equities. The first is the definition and limitation of high frequency trading (HFT) through a dedicated fee structure that markets should implement. This type of trading has increased since new trading venues and fragmentation has occurred. The next focuses on OTC trading which is being moved onto listed exchanges. OTC trades will correspond to trading exceptions but they need to be clearly defined. Third, which is still under discussion, is pre-trade price transparency with the exceptions granted to dark pools. There is also talk of the possible creation of both a new trading platform OTF (organised trading facility) to better regulate broker crossing networks and a European consolidated tape. Last but not least is better best execution control or stricter obligations such as monthly reporting by intermediaries and platforms. Altogether MIFID II should
reduce HFT activity and increase market transparency.
And FTT? There has been a push to get a
European-wide FTT but so far some countries such as France and Italy have done it alone. However, there are differences between the two in that France allows the use of swaps or contracts for difference. This is not the case in Italy. Overall, I think the momentum is there for a European-wide FTT, which is very much politically, rather than financially driven but there need to be consistent rules. I do think though it could have a detrimental impact on volumes
You have recently launched a best execution offering. Can you provide more details about your best execution offering? If you look at the surveys such as Greenwich Associates, flow is concentrated among the top ten brokers. We are on the list as the only non-conflicted agency broker with a multi- country offering. We are not an investment bank whereas the other nine on the list have a global business model. We focus on best execution and we need to be pre-eminent in that space. This means being
35
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92