The TRADE 53 | Page 8

PEOPLE MOVES BUY-SIDE Citi taps Deutsche for global electronic and algo trading head Citi hired a new global head of electronic and algorithmic trading and head of futures, clearing and collateral for EMEA from Deut- sche Bank. Sabrina Wilson held similar positions during her time at Deutsche Bank and she has more than 20 years’ experience in futures and options, clearing, market structure and electronic trading. Barclays hires KCG’s Europe- an electronic trading head In July, Barclays hired Graham Wayne, KCG Europe’s former head of electronic trading, in a new product role. Wayne’s appointment is a significant boost for the British bank, after it lost its former global head of electronic equities, Joe Me- cane, to Citadel Securities in June. Candriam bolsters multi-asset trading desk with new hire Candriam Investors Group hired a new trader covering cash equity, FX and derivatives as the firm looks to foster new talent in European buy-side trading. Vincent Minichet- ti joins Candriam from Edmond de Rothschild Asset Management in Paris where he traded futures, options and credit default swaps. 8 TheTrade Autumn 2017 Major buy-side institutions opt to absorb research costs under MiFID II Unbundling will ban the buy-side from receiving research paid for through execution commis- sions. JP Morgan Asset Management, T. Rowe Price, Aberdeen Asset Management and Allianz Global Investors are among several buy- side firms to pay for the cost of external research under MiFID II. In a statement, JP Morgan explained a ‘substantial’ amount of resources are already committed to the internal research depart- ment at the asset manager and there will be no changes to the internal teams due to the policy change. “We also utilise external analyst research where we believe it can add value to client portfolios,” JP Morgan added. At T. Rowe Price, Rob Sharps, co-head of global equity and Group chief investment officer, wrote in a statement it decided to absorb the costs as the buy-side firm is ‘well-known’ for its internal global research platform. “In recent years, we have continued to invest in our alpha-gen- erating capabilities around the globe by adding analysts focused on fundamental research, quantitative research, corporate gover- nance, socially responsible investing, and corporate access. “The supplemental third-party research we receive comple- ments our own proprietary research,” he said. Sharps added the decision to absorb the costs of research was made in clients’ best interests, while preserving its investment process and access to ‘important’ third-party research. The majority of asset managers currently receive research paid for through execution commissions or commission sharing agreements, rather than paying for it directly. This method is not allowed under MiFID II and unbundling could potentially see huge costs transferred to the buy-side. Deutsche Asset Management recently created its own inter- nal research division in a bid to control its research costs come January 2018. Deutsche’s research unit will help fund managers identify investment opportunities and provide clients with regu- lar analysis on macro-economic developments. In June, Barclays became one of the first investment banks to put a price on its research, through a tired structure costing any- where between £30,000 and £350,000.