THETRADETECH DAILY
THE OFFICIAL NEWSPAPER OF TRADETECH 2021
NEIL JOSEPH : automating trader workflows
Neil Joseph , European head of equity trading at JP Morgan Asset Management , tells the TRADETech Daily about how automation of workflows helped his trading desk navigate a 40 % increase in volumes in 2020 .
At TradeTech this year , you are scheduled to speak on an all-star panel about systematic trading . Why do you think automating trading workflows is such a hot topic now ? Broadly speaking , automation can be categorised as either execution or workflow automation , and both types of automation can help to drive trading cost reduction , risk reduction and minimise manual effort . Hence , it ’ s paramount in delivering for clients . Automation also helps to free up traders ’ time so they can implement tailored trading styles in volatile market conditions , thus the heightened industry focus and conversation on automation over the past year . costs , reduced manual effort , and reduced risk are all end goals when automating execution and other workflows . A consistent approach should also result in more comparable data and improved analytics . From here , quantitative and machine learning generated recommendations can be leveraged by both traders and automation systems . But it ’ s important to note that whilst automation is a powerful tool , it ’ s not an end in itself . To reduce the likelihood of any automation-related pitfalls , it ’ s good practice to keep your end goal ( s ) front of mind .
What role has automated trading workflows played during the pandemic and recent market volatility ? Thanks to the automation of workflows and talented traders , we successfully navigated a material increase in last year ’ s volume of orders , which increased 40 % compared to 2019 in EMEA . This was achieved with the same level of resourcing , whilst minimising trading costs and without any errors .
What are the inherent benefits and risks of systematic and automated trading ? Consistency of outcome , reduced trading
What role will automation play in the future for trading desks ? The industry is evolving as fast as ever and there will be periods of elevated volatility due to market cycles and exogenous events . Trading desks need to utilise agile methodologies and have a strong foundation of talent and platform , including automation , to be nimble and flexible enough to pivot in this environment . Automation will remain a key part of this story , offering flexibility and continuous improvement of trading performance .
“ Thanks to the automation of workflows and talented traders , we successfully navigated a material increase in last year ’ s volume of orders , which increased 40 % compared to 2019 in EMEA .”
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