The TRADE 63 - Q1 2020 | Page 34

[ C O V E R I N T E R V I E W and lack of depth in the midday lull when markets open, before ramping up for the close,” says Muschamp. “There’re ways to work around that but it’s not ideal con- ditions. We agree with the business case for shortening market hours, but it’s a more positive devel- opment in terms of the push for greater diversity and emphasis on well-being.” Like many firms in the industry, T. Rowe Price responded to the London Stock Exchange’s consulta- tion on shorter market hours, very much in favour of the efforts. While the benefits to market structure and the liquidity landscape are clear, the asset manager’s traders point to the well-being and mental health of those in the industry as a central cause, alongside the need for diversity. T. Rowe has bolstered its efforts to ensure the well-being of its traders and staff in various ways. Flexible working is welcomed, as well as participation in educational programs aimed at informing its workers that it’s okay to not feel ok. Ultimately creating an environ- ment whereby the firm’s staff feel confident and able to talk to a line manager, or each other, if they are struggling. The traders agree that the role of the buy-side trader is indeed intense. “It’s intense every minute of the day, right? It’s the consistent working hours, which goes back to the shorter market hours issue,” says Wilkes. “It will have a hugely positive impact on our industry in terms of well-being. It’s demand- ing to have to concentrate on the job every minute from 6.30am and there’s no let-up. It’s a continuous challenge of the role.” On diversity, T. Rowe Price is working on a ‘Women in Invest- ments’ project and has a business 34 // TheTRADE // Spring 2020 | T. R O W E P R I C E ] “We are conscious that the photos for this interview may not necessarily back up how seriously we view diversity.” resource group for women across the firm. Wilkes and Ellis both also sit on various diversity committees exploring the issue further. Ellis is mentoring people outside of the industry as part of the 30% Club scheme, which he says has been eye-opening in terms of getting a different perspective. “We are conscious that the photos for this interview may not necessarily back up how seriously we view diversity, but I think the message is that we are get- JEREMY ELLIS, HEAD ting better and better at our diversity OF EUROPEAN EQUITY efforts across the firm as a whole,” Ellis TRADING, T. ROWE PRICE explains. “It’s central to the company. While we may not look diverse, that doesn’t mean we can’t proactively understand the issue and have a positive impact to the broader company. That’s where we are coming from at this stage. As I look around, I see a lack of egos in this firm and that goes right up to senior management who are approachable and engaged in the business.” Looking to the future, Ellis and his team concur that the buy-side must provide relevance and value to cli- ents, which T. Rowe is confident it is aligned to deliver. But this is a constant evolution that the desk needs to keep on top of, from the investment side, market structure, regulation and execution. At the same time, the battle for diversity continues as increased automa- tion across the industry shifts the role of the buy-side forever. “In the future, there will be more layers of automa- tion and the next hire to the execution team will have a lot more of Evan’s skillset than mine,” Ellis explains. “There are firms out there where execution is becom- ing more operationalised, or TCA-led, but that’s cer- tainly not the case here. The need for liquidity requires a more nuanced approach than purley led by TCA. Not all asset managers are created equally, as an active manager we need to find solutions that both scaleable and accommodate multiple challenges." “We’ve also heard discussions around outsourced trading, with quite a defensive response from the buy-side, similarly defensive to the reactions we saw to MiFID I, MiFID II and high-frequency trading. I’m sure there is a use case for outsourced trading for smaller asset managers, and possibly some of the larger asset managers, but that sort but that sort of innovation will continue to come through. If there’s one thing my career so far has taught me, and the team here will agree, it’s that you must evolve with the business.”