Over the last few years, asset managers have been aggregating disparate asset trading desks and consolidating Order Management Systems (OMSs) to support these multi-asset trading desks. There are powerful external drivers pushing the industry in this way, including market evolution and regulation. Not to be overlooked are the equally powerful internal drivers which include changing portfolio management dynamics, cost savings, risk reduction, efficiency and liquidity. The combined effect of these drivers provides a compelling argument to get with the program.
What should you look for in a multi-asset-class trading system?
● Flexible configuration, asset-specific workflows and an interface that can be designed around the roles of disparate users.
● Full support of all asset classes you trade including extensive security master detail, workflows and compliance capabilities.
● Currency hedging tools.
● Flexible calculations to perform the right calculations.
● Integrated compliance with full look-through for derivatives and funds.
● Trade date and settlement cash support to help manage the different settlement and maturity issues of your instruments.
● Support for linked and contingent trades across asset classes.
Changes to investment styles and market evolution partnered with cost and risk reductions means that global multi-asset trading is a reality. There will be a clear advantage to firms that are able to adapt their mindset and technology to embrace the changes and offer clients a better performance at a lower cost. A change in market paradigm will produce winners and losers. With investors being the judge, can you afford to lose?
Gavin Little-Gill is managing director of Linedata Asset Management, North America.
“A change in market paradigm will produce winners and losers. With investors being the judge, can you afford to lose?” Gavin Little-Gill
Bryan Harkins joins to discuss how the CBOE-Bats integration is going and plans for the exchange operator going forward. Anthony and James talk about the SEC hack and Esma's potential new powers.Subscribe to Weekly Wrap emails