As H1 reaches a close, the industry finds itself on the precipice of change…again. The flurry of elections expected to shape many of the world’s largest democracies have now begun in earnest.
The rates environment remains challenging for traders and it’s been an eventful quarter regulation wise. The US shift to T+1 rolled out in the US in May. The overall conclusion? So far so good. Operationally, many have suggested the transition was fairly smooth but only time will tell how great the impact has been. Whether – or should I say when – the UK and Europe choose to follow suit is now the central question for many.
This edition of The TRADE Magazine unpacks our industry over the last three months with the latest news and moves, hedge funds results of our Algorithmic Trading Survey, and in-depth features exploring new venues trying to make waves in Europe, the CLS cut-offs in light of T+1, disparities in ETF volumes in the US and Europe, outsourced trading, and more.
This quarter’s exclusive buy-side content has a royal twist – only the best for our readers – and sitting for our buy-side cover and meet the desk interviews are Hugh Spencer, set to take over the reins at Janus Henderson from Dan Royal at the end of this year, and the London-based Royal London Asset Management (RLAM) trading desk.
It’s been a packed-out quarter and the activity shows no sign of abating. You may have already seen the exciting announcement regarding Leaders in Trading New York but in case you missed it find details of the date and location included within. We’re more than excited to be launching the first US iteration of our flagship awards night in November so make sure to get in touch with Patrick should you like to attend.
Take a look below for more detail on Q2 content:
In depth – Inside the FX cut-off conundrum that sparked animosity between the buy-side, CLS and custodians in the build-up to T+1
Finger of blame was being heavily pointed in each direction between custodians, non-US traders and settlement system CLS over FX cut-offs ahead of the US shift to T+1, with last minute decisions and confusion meaning some asset managers were left facing operational challenges, pre-funding trades and balancing settlement security with best execution obligations.
Buy-side cover interview – A Royal succession
Annabel Smith sits down with the incoming global head of trading at Janus Henderson to explore what’s brought him to this inflection point in his career, his love of trading, and his soon to be predecessor Dan Royal’s succession plan as he looks to step back at the end of the year.
In depth – Lessons to be learned from the US to boost European ETF growth
With clear distinctions in volumes across the UK and EU when compared to the US, Wesley Bray explores the evolving use of ETFs, reasons behind regional disparities, what can be learned from the US and how innovation can help bolster trading volumes.
The Big Interview with Groupama AM’s Eric Heleine
Head of the buy-side trading desk at Groupama Asset Management, Eric Heleine, sits down with Claudia Preece to discuss the dynamic of his trading desks, how traders’ skillsets are evolving, the specific tactics and strategies which contribute to being a great trader and what’s front of mind across the buy-side for 2024 and beyond.
In depth – Outsourced trading: Easy to do, difficult to get right
As outsourced trading gains traction, Claudia Preece delves into what factors make for success in the space, pinpointing some of the main elements influencing the future landscape. As ever-larger players continue to make real moves, costs rise, and expectations placed on providers increase, only those with truly effective offerings will reap success as consolidation continues.
Meet the Desk – Royal London Asset Management: ‘At the end of the day, they’re just really good traders’
Annabel Smith sits down with Royal London Asset Management’s (RLAM) multi-asset centralised dealing desk to explore its recent structural changes and the value of in-house data capabilities on the desk in light of the current trading environment.
In depth – Early bird catches the worm: The race for first mover advantage in Europe’s emerging crossing network landscape
In light of the US ATS’ looking to migrate to Europe and new offerings being proposed by European exchanges, Annabel Smith weighs up increased fragmentation against innovation, exploring the new competitive landscape, the prospect of private rooms, and who might be the provider to benefit most from first mover advantage.
The TRADE’s Algorithmic Trading Survey Hedge Funds 2024: Survey results suggest light at the end of the tunnel for hedge funds utilising algorithmic trading strategies
Bouncing back from declines in scores across the majority of categories last year, hedge fund results from The TRADE’s Algorithmic Trading Survey 2024 show more promise, with an overall rating for algorithm performance achieving the highest average score on record.
Closing bell – Asset managers proceed with caution despite overwhelmingly successful T+1 transition
Initial data from DTCC gives an indication of positive affirmation and fail rates, while the buy-side feel the transition has gone operationally well. However, there are still concerns around the future regarding overdrafts, public holidays, FX and more.
Read the full issue here.