Liquidnet has launched a new multi-asset trading desk, providing its members with one centralised desk which gives access to liquidity across a variety of asset classes, The TRADE can reveal.
Speaking to The TRADE, Chris Jackson, global head of equity strategy and head of equities, EMEA, explained: “There’s a number of different pieces that we’re drawing together. We operate in over 50 markets and block trading in equities is our main calling card so to speak. It is a business that we have evolved beyond just block trading, with a set of execution services, including algorithmic trading and high touch.
Balraj Briah
“Clients have been asking us increasingly to take those core values, and the Liquidnet approach, and apply that to helping them simplify the complexity of multi-asset trading so that’s what we’re doing, leveraging our unconflicted model and a technology-driven approach.”
Read more – Building an agile multi-asset business
Balraj Briah has been appointed head of multi-asset services, having most recently served as managing director at BTIG. He has also previously served in sales trading roles at Citi, Nomura, and BNY Mellon.
“The trading landscape is evolving and so are our members’ needs, that’s why we’re really excited to have Balraj on board. He brings a breadth of experience across multiple asset classes,” Jackson tells The TRADE.
Alongside Briah, David Cannon joined Liquidnet last month as head of multi-asset execution. He previously spent almost 17 years at Louis Capital Markets, most recently as head of equity trading.
“Dave has a huge amount of experience in the execution space that he has gained over many years on both the buy- and sell-side,” asserts Briah.
The addition of Briah and Cannon builds on several other new recent hires, including the appointment of multi-asset traders for the desk, with plans also in place for a senior hire in the analytics space – a major focus as part of the multi-asset push, The TRADE understands.
Briah explained: “Data analytics is becoming more unified and lends itself better to cross-asset trading. This move is really improving traders’ relationships with their portfolio managers, enhancing their ability to act as their ‘eyes and ears’ in the market and overall increasing their trading performance.”
Across the market the shift towards multi-asset trading has been clear to see, in particular given the advancement of technological capabilities, an increased focus on risk management, and increasing market intricacies.
Read more – The multi-asset multiverse: Anticipating the trading landscape of the future with Mark Govoni
Speaking to the timeliness of the move, Briah tells The TRADE that a key recent trend he has been observing is the acceleration towards multi asset trading amongst the buy-side.
“I worked for many years at a large asset manager and we had separate dealing desks for each asset class, with each trader then having a very-clearly defined role.[…] This specialism meant there was, in some cases, only one expert in a particular product and, over time, people have started to realise that it isn’t an optimal set-up.
“Traditionally, multi-asset trading desks were more common at hedge funds but larger asset managers are increasingly adopting this model. Where before they didn’t necessarily have the resources to dedicate to different dealers, different desks, over time that has changed, especially as asset classes become more electronic.”
Read more – Fireside Friday with… Liquidnet’s Gareth Exton
Liquidnet’s position as an agency broker is a key factor in how the business conducts itself across asset classes, said Jackson. The business is never competing or has a competing interest with its own trading book and as such has historically placed a high importance on the use of technology to help clients improve trading performance.
As Liquidnet builds out its multi-asset capabilities, the business demonstrably already has an established approach lined up and various pieces of the puzzle in place across the organisation, as well as opportunities for collaboration with the broader group.
Speaking to what’s front of mind at this stage, Cannon said: “Within multi-asset trading, a key consideration is that each asset class possesses its own unique trading difficulties. We need to bear in mind that there is no one-size-fits-all approach when it comes to trading different asset classes.
“It’s really important when we talk about technology and automation that we also look at the role of the trader. I think what makes technology very powerful is bringing it together with the trader’s knowledge and expertise to create Alpha for the desk. At Liquidnet, we’re really well positioned to do that and it’s a really exciting proposition that we hope to be able to offer to our members.”
Briah adds that key considerations when it comes to hiring on the execution desk is first and foremost ensuring that everything is of highest quality in order to meet the demands of the complex multi-asset space.
“When we do something at Liquidnet, we do it right and we do it in collaboration with our members. We live and die by the quality of our execution and providing the best price possible in the market.”