[ WOMEN ' S HISTORY MONTH | LIONTRUST AM ’ S MADDY DAVIES ]
I ’ m sure will help me in my future career .
What makes a successful multiasset trader ? Versatility and prioritisation are key . You need to be able to adapt quickly between asset classes and often multi-task trading across assets at the same time . Every trade needs your full attention , regardless of what you might already be doing in another asset class , and ensuring you prioritise correctly is essential . You need to know the likely price impact of certain economic events and the ever-changing demand and supply picture on each order . Learning similarities in how certain instruments trade and affect each other helps a lot from an execution point of view .
Something equally as important as versatility is the ability to condense and cherry pick the best information , colour and flows , not just for our fund managers , but for ourselves too . Multi-asset traders are lucky enough to receive a wealth of information from endless IBs , emails and calls from counterparties in each asset class . It would be impossible to read and take in every bit of information available to us , but making the most of the access and condensing it down to take in the best bits is an important skill to have .
Why do you think diversity of thought on the trading desk and beyond is important ? Diversity of thought lends itself to better decision making . By incorporating multiple viewpoints and challenging what might be the consensus , you tend to make better decisions overall . Coming into my role with a fresh pair of eyes and less experience
than the rest of the team , there have been times when I have questioned why things are done a certain way . We have an open and inclusive culture within the team and Liontrust in general , where we aim for constant improvement and challenge is welcomed . This has aligned with my own style as I feel it is important to always be thinking about how processes can be updated and to adapt with the times , instead of staying static . In our team , we approach problems and trades from different angles given our differing levels of experience , and in turn this leads to more innovative ideas and stronger decision making .
As traders , we sit among the investment teams on the floor and are constantly interacting with them . Between the various teams and roles , you inevitably get diversity of thought . Sometimes , the way in which a trader or a portfolio manager ( PM ) approaches a trade can differ . The interaction and sharing of ideas when trading ultimately leads to better outcomes – for not just us as traders , but importantly the end client too .
How do you think about liquidity and how do you go about trying to source it in the current environment ? Liquidity is in the forefront of investors ’ minds and sourcing it efficiently is vital . We always strive to stay up to date with the latest global market structure trends and developments to achieve this . Given this is continually changing , we are constantly
48 // TheTRADE // Q1 2024