The TRADE 60 | Page 68

[ M A R K E T R E V I E W | F I X E D I N C O M E ] The fixed income desk in 2019 Chris Hall talks to four leading fixed income heads of trading desks around the world to gauge the state of the fixed income markets in 2019, covering the biggest opportunities and challenges for asset managers, how the relationship with the sell-side and vendors has evolved, and what new skills are required on a successful desk. What are your biggest priorities and challenges in fixed income trading, and how are you addressing them? Dan Veiner, global head of fixed income trading at BlackRock: At BlackRock, we’re focused on achieving efficient and safe sourc- ing of liquidity at scale in a growing AUM environment, maximising the information value that trading con- tributes to the investment process and utilising technology and data to continually evolve. Our traders are partnering with trading research and data sci- ence teams on various projects to evolve the platform in many of these areas. Increasingly, our fixed income traders are partnering with portfolio management and research teams early on in the in- 68 // TheTrade // Summer 2019 vestment process, and we’re experimenting with trading technology and trading protocols. I think it’s important to constantly question the status quo, and envision how we would design a function or technology if we were starting from scratch. Lee Sanders, head of execution FX and UK & Asia fixed income trad- ing at AXA Investment Managers: We’ve done a lot of work recently on our use of high- and low-touch execution channels. We’ve long recognised that traders do not need to take the same degree of ownership over certain orders to guarantee the best outcome for the client. We will start in the FX and list- ed markets and will follow with cash bonds. We have been exploring opportunities to route trades from our