As the leaves begin to fall from the trees, The TRADE Magazine is back for its autumnal third quarter edition. In keeping with tradition, this issue has a fixed income spin to it.
It’s a well known fact that markets globally orbit the US. Activities that take place in the region will nine times out of 10 have a butterfly effect on the rest of the world – The US market is the world’s benchmark, sturdy and omnipresent.
However, in the last few months the US boat has begun to rock and investors are now gearing up for a potential recession in the world’s largest economy due to tight monetary policy. Unlike other central banks around the world, the US Federal Reserve’s first interest rate cut is only expected to take place in the third week of September – a decision that has come under criticism from some who claim it’s too little too late.
Regulation-wise, the US is also undergoing a major overhaul across several corners of the investment value chain from reporting to best execution to Treasury clearing. The advent has been likened to the events surrounding Mifid II in Europe in 2018 and the years since, with many expressing exasperation with the US Securities and Exchange Commission (SEC) over its ‘everything at once’ approach to change.
This edition unpacks all this and more including in depth features exploring the developing emerging markets landscape, artificial intelligence, the impact of the new Treasury clearing rules in the US, the prime brokerage landscape, and the role of technology in the shifting relationship between the buy- and sell-side.
This edition’s cover star is none other than Legal and General Investment Management’s (LGIM) head of US trading, Ryan Raymond, and the fun does not stop there as featuring as our Meet the Desk interview for this quarter is the London-based trading team at Ninety One. Also included in this edition are the results from The TRADE’s annual Execution Management Systems Survey.
Take a look below for more detail on the Q3 content:
In depth – The evolution of the buy- and sell-side relationship
Wesley Bray explores the impact that new technology and alternative liquidity sources are having on traditional buy- and sell-side roles.
Buy-side cover interview – Keeping an aircraft carrier nimble in times of turbulence
Annabel Smith sits down with head of US trading at Legal and General Investment Management (LGIM), Ryan Raymond, to explore the nuances of the US market in light of changing central bank policy and the upcoming election, his journey to the trading desk, and the importance of portfolio diversification in order to be able to adapt quickly.
In depth – Don’t sleep on emerging markets fixed income
As the industry turns its collective attention to the potential for a rebounding of emerging markets in the fixed income sphere, Claudia Preece takes a look at the current state of play, unpacking how both firms and providers are keeping EM bonds front of mind to maximise opportunities in the space and the key motivations for desks going forward.
Meet the Desk – Trading at the frontier
Annabel Smith sits down with the London-based trading team at emerging and frontier markets trading specialist Ninety One to get the inside track on how the desk fits into the global asset manager’s remit, along with discussing market themes, and the team’s technology wish list.
In depth – A look into the centrally cleared future
Wesley Bray explores the latest rule changes for fixed income clearing in the US, what institutions should be most conscious of, how to navigate these changes and what their impact will likely be on competition.
The Big Interview with BTIG’s Stephen Ponzio
Claudia Preece sits down with head of electronic trading at BTIG, Stephen Ponzio, to discuss what’s front of mind when it comes to investing in e-trading talent, which characteristics are most prized on the desk, the importance of human-to-human interaction, and the firm’s future technological plans.
In depth – The prime brokerage pie is growing, which means bigger slices for everyone
Prime brokerage is a business driven by growth in its client base, and in 2024, players of all shapes and sizes are reaping the rewards of navigating an eventful few years to post record numbers off the back of positive trends in the hedge fund space, writes Jonathan Watkins.
In depth – AI? Patience young grasshopper
As the adoption of AI surges across capital markets, sentiment is on the up despite some trepidation, but what should be considered before everyone dives headfirst into integration? Claudia Preece weighs risk versus reward and takes stock of where the newest AI capabilities could throw up some curveballs when it comes to trading.
The TRADE’s Execution Management Systems Survey 2024: Buy-side remain largely satisfied with EMS providers despite market headwinds
Though acknowledging areas for improvement – namely among product development and cost of operation – this year’s survey achieved an overall score of 5.91, just three basis points less than last year’s record score of 5.94, implying general satisfaction among the buy-side when it comes to their EMS providers.
Closing bell – Algos must adapt or perish in today’s volatile market terrain
With market volatility more prevalent than ever, algo strategies will need to be revamped to remain effective and successfully seize opportunities, writes Sylvain Thieullent, chief executive at Horizon Trading Solutions.
Read the full issue here.