[ B U Y - S I D E C O V E R | C H R I S T O P H H O C K ]
a hybrid organisational
Christoph Hock , head of multiasset trading at Union Investment , sits down with Annabel Smith to discuss the European asset manager ’ s new hybrid structure , regulatory divergence post- Brexit , the role of the trader in sustainability , and the token economy .
U
nion Investment is in many regards a pioneer . At the forefront of several recent market initiatives , the firm has acted as a benchmark for the European institutional buy-side on sentiment around cryptocurrencies , multi-asset trading , regulation , sustainable trading and now a hybrid organisational structure focused on what the ship ’ s captain , Christoph Hock , refers to as best-in-classexecution .
Since Hock joined Union in 2014 , the European asset manager has undergone a continued evolution , becoming one unified multi-asset trading desk the year after he took the wheel in a bid to execute a bigger percentage of orders sent by portfolio managers . However , his work didn ’ t stop there . In June last year , Union was reborn with a new hybrid organisational structure that divided this central trading desk into three teams , with his traders filtered by crystalised and clear-cut methods of execution .
The three teams now sit directly below one head of multi-asset trading , Hock . Two of these are trading focused , split by execution approach depending on the market impact of an order . One is focused on high-touch trading and handles complex orders including those which might be for less liquid instruments or large orders of liquid ones that need to be worked over a few days and could create a large market impact . The other is an electronic solutions technology ( EST ) team which focuses on orders with minimal market impact where a trader can add little value , opting for speedy , automised and low touch forms of execution . Each unit works in tandem with the other , with the EST team often developing the infrastructure that is then used by the high-touch traders .
The structure pays homage to the unavoidable presence of automisation in the market while simultaneously stressing the continued importance of high-touch trading . For Hock , the ongoing
36 // TheTRADE // Winter 2021