being forced onto centrally traded and
cleared platforms. That means that
a significant portion of the market is
moving towards electronic execution.
But more broadly, asset managers
must also consider their best execution
obligations under MiFID II – a task that
requires both verifiable data and the
means to understand and analyse
the market.
The increased focus on regulatory
scrutiny also links back to the demand
for more transparency. For example,
the global central banks are launching
a code for FX traders around the world,
encompassing a code of conduct
and ethics. Schoeppe recalls that on
18
The Buy-side Perspectives | Issue 3 | April 2016
joining the industry, he had to pass
trading and compliance tests in some
industry areas – but such tests seem to
have fallen by the wayside in the years
afterwards. Now, these tests are being
brought back across the industry and
made mandatory again – a move he
sees as correct and positive for
the industry.
“Internally we continue to see an
increase of frequency and face-time
spent in our governance processes
and forums where our trading results
are reviewed and discussed with
compliance, risk, settlement, operating,
and technology specialists as well as
of course with our PMs,” he said.
“The asset side will continue
pushing for more transparency
into the markets.”