[ WOMEN ' S HISTORY MONTH | LIONTRUST AM ’ S MADDY DAVIES ]
we would miss out on potential liquidity opportunities .
speaking with our counterparties , liquidity providers and exchanges to discuss the changing venue and order type environment . We work with our brokers to customise our algos and smart order routers to better suit our flow type and make sure we are capturing liquidity from the right variety of venues at the right time in the lifecycle of our orders .
Beyond using all the tools and venues that all our peers also have access to , we place a lot of value on interaction with our high touch counterparts . With our involvement in the investment process , we are well placed to decide whether liquidity opportunities make sense for our funds or not . Often , we will suggest to fund managers that they raise orders to benefit from large block crossing opportunities when we do not have live orders on the desk . This enables the funds to obtain advantageous prices , solve liquidity issues before they even arise and helps our fund managers to implement their investment decisions efficiently . Not every investment strategy lends itself to taking full advantage of this , but we aim to add value wherever possible and this has been particularly successful in small- and mid-cap equities .
We put emphasis on this being a two-way relationship between us and the sales trader and we try to give them colour where we can , so they know where we care going forward . They often know where the bodies are buried in certain names , so without having these reciprocal partnerships ,
How are you as a new trader in the industry leveraging data and TCA to influence execution decisions ? I know that in recent years the way in which trading desks are utilising data has evolved a lot and it is now a starting point to most execution conversations . We have so much data and TCA at our disposal and as a new joiner to the industry there are so many insights that I can take and learn from .
I think it ’ s important to ensure we take actionable insights from the data and make it digestible both internally and for our end clients . I ’ m a fan of Power BI and have taught myself how to make TCA more visually appealing by using it . It is our responsibility to know how to use all the tools available to us to help us influence our execution decisions . Recently , I have made a dashboard looking at the performance and liquidity data on our past credit program trades and we can use this for smarter counterparty selection . This helps us in our quest for continuous improvement .
The TCA that we generate ourselves and receive from our brokers is insightful . I take advantage of the opportunity to discuss it with the experts , as I find that people are always willing to give time to those wanting to learn . There ’ s a clear benefit of coming into the world of TCA fresh without any longstanding trading habits – you are open-minded to tweaking decisions and processes based on the numbers you are presented with , and can make more databacked decisions and reduce the effects of cognitive biases .
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