Buy-side Perspectives Issue 3 - Page 18

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.”