THETRADETECH DAILY THE OFFICIAL NEWSPAPER OF TRADETECH 2022
making progress . TCA is a field that can be complicated because it relies on clean data . The cryptocurrencies world is still not that regulated and the prices can be different from one exchange to another . I think it is still at an early stage . Rebuilding a tape will be tricky . At the moment , taking an exposure to these assets is quite limited for our industry with the use of products like exchange traded funds ( ETFs ) which are expensive at the moment . I ’ m not sure if TCA would be a great help .
What limitations remain for multi-asset TCA , how can these be improved ? Certain asset classes such as fixed income are lagging in terms of TCA , and there is not a one size fits all . A good TCA relies on good ( and public ) data . Some tools just rely on the client ’ s data and it can mean the sample is not a good proxy of the market if the set of data is too small . Collecting data has a cost and companies will probably need to create a team to analyse it to justify the cost of spending . I think that as of today , most of the trading desks - except the big ones - use the tools included sometimes in the EMS ( like we have with Virtu for equities and FXall for FX ). To have clean , cheaper and consolidated data would be a game changer .
What role does automation play on a multiasset desk , is full automation desirable ? As a multi-asset trading desk , automation is the key to success to strengthen order workflows . It helps traders to save some time so they can focus on more complex orders or code and develop other tools . Full automation depends on your style , your flows and your size . We went for partial automation as we think full automation may not be appropriate given our order flow . From our point of view and given the complexity of some of the orders we trade , there is little room for a full automation process which could incur any additional operational risk and unsolicited costs . We saw that during Covid where we decided to handle 100 % of the orders by ourselves regarding the level of volatility in the markets . For larger companies it definitely makes sense especially when orders are liquid and small in dollar value .
Which panel at TradeTech 2022 are you most looking forward to ? I ’ m looking forward to seeing most of them because as a Switzerland-based trader it ’ s a good opportunity to hear from peers from the EU and the rest of the industry in every area to see how they handle situations . I ’ m also excited to watch the panel assessing the future of DLT , blockchain and digital assets .
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