much part of the investment process, and this can add significant
alpha to portfolios based on news
flow by being at the coalface with
the market.
How could the buy-side
increase their role in
providing liquidity?
In the cash market, particularly
in fixed income, we have seen
an increase in ‘all-to-all’ trading
where several large platforms
to liquidity in specific contracts
but also in strategies. We look to
blend in OTC derivatives when
think we will have a material foot
print on a listed market con-
tract. We have constant dialogue
with portfolio managers where
feedback from the trading desk
around ‘crowding out’ of con-
tracts and strategies. In today’s
environment execution desks are
no longer just pressing a button
to get trades done, they are very
will in most cases want to own
the entire trading process. It will
make sense for some smaller
asset managers to outsource
certain aspects of their trad-
ing, especially in niche markets
where they don’t have presence.
Is there a shortage
of liquidity in some
derivatives markets?
There is, it is something we monitor very closely. We not only look
“Clearing will become a bigger part of the decision
making process when executing a trade.”
COVER FEATURE | ADRIAN BIESTY, LOIM
