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Miles Kumaresan, CEO, WaveLabs
The tech arms race is
about to gain significant
momentum in fixed income.
In general, all aspects of
current market practice
for this asset class will be
challenged. The first low-
hanging fruit to be picked
would most likely be the
mining of RFQ data every
buy-side has – a model to
recommend to traders the
best counterparties to issue
an RFQ to, based on historic
RFQ. Next, many buy-sides
would look into keeping
a normalised repository
of all available data for
further analytics. The big
push will come be in the
form of a “seamless and
enhanced workflow”. Other
interesting work would
be in the area of smart
liquidity seeking algorithms,
new tools to increase
all-to-all trading and price
discovery. More and more
sell-sides will try to offer
tradeable streaming prices.
Finally, new block trading
alternatives are also likely
to emerge.
Curtis Ravenel, global head of sustainable business & finance, Bloomberg
Environmental, Social and
Governance (ESG) is likely to be
a key agenda item for buy-side
firms globally next year. European
institutional investors are
increasingly asking for greater
disclosure of ESG factors, in
anticipation of the introduction of
new EU rules requiring investors
and asset-managers to include
ESG considerations in their
investment decision-making
process. This is beginning to
have spill-over effects in the
US and other jurisdictions, as
European clients are asking their
investment managers, regardless
of location, to disclose ESG factors
influencing portfolio construction.
Companies are also starting to be
pressured to disclose how they
are managing climate-related
risks and provide more high
quality ESG information, in a
manner which is consistent with
the recommendations of the FSB
Task Force on Climate-related
Financial Disclosure (TCFD), and
the Sustainability Accounting
Standards Board (SASB),
which focus on sector-specific,
financially material climate and
sustainability issues.
Mark Hemsley, president, Cboe Europe
As market participants continue
to analyse trade execution data,
we’ll continue to see an increase
in volumes on venues that
provide minimal market impact,
such as block trading platforms,
periodic auctions and systematic
internalisers. We know that
78 // TheTrade // Winter 2018
one size does not fit all when
it comes to markets and it is
more important than ever for
market infrastructure providers
to innovate and develop services
that address the unique needs
of all market participants.
Whether it be a lit order book for
speed of execution, a periodic
auction book for low market
impact, or a large in scale
venue for large block trades,
choice and competition are
critical for ensuring European
equities investors have the best
experience possible.