fixed income orders; it’s a busy
operation,” he says. “We owe it to
our investors and to ourselves to
continue to innovate, and that’s a
challenge, one we are well-placed
to meet.”
Going back to the importance
of continual improvement, Wicks
says that the most fundamental
challenge for the firm is to deliver
better client outcomes, which in
turn means recognising that as
market conditions change so too
must trading processes and exe-
cution arrangements – a prospect
arguably made harder during
periods of market volatility.
“To be successful in any trading role,
be it on the sell-side or the buy-side,
you have to have the mindset or
attitude to want to come into the
office every day and incrementally
improve the trading process.”
While this will not be a challenge
specific to LGIM, the way in which
asset management firms approach
such a problem will differ from
56 // TheTrade // Winter 2018
desk to desk. Wicks highlights the approach to high-
and low-touch trading during market volatility as a
pertinent example, stating that there will be different
approaches to redressing the balance at such times
depending on the mix of asset classes and orders
involved.
“The main point here is to recognise that your oper-
ating model and execution framework must be adapt-
able, so you are not just rigid and set up in a certain
way,” he says. “That is an important part of any head of
trading’s role, to recognise that you must continually
ask yourself if your current set-up is appropriate for
current market conditions. Ideally you want that flex-
ibility, to be able to pivot and tilt depending on where
markets are going.”
Undoubtedly the biggest change to the markets in
recent years was the introduction of MiFID II and as
Wicks states, this doesn’t mean that regulation will
stay static in years to come. He points to the rhetoric
from regulators and politicians to continue to evaluate
the efficacy of the new regulatory regime and ensure it
is fit for purpose.
“I don’t think MiFID II will be a one-time shot, there
will be further iterations to come and we have already
seen things around that,” he says, pointing to a lack of
progress concerning market data costs and the lack of
consolidated tape as key issues to be addressed by both
the asset management industry and regulators alike.
“We have to see progress in terms of a consolidated
tape and that is in both fixed income and equities. This
is a fundamental requirement for the buy-side and
everyone should be cognizant of the importance of this