THETRADETECHFX DAILY from the floor
“ Traders must have both a macro and micro view of the market at any given time to allow them to engage with teams in conversations on macro strategy , advise them on market microstructure , as well as monitor and analyse TCA data on a pre- and posttrade basis .” execute across more asset classes at greater scale than ever before presents an effective strategy for cost-cutting . By amalgamating trading across asset classes firms can streamline operations and make savings through consolidation and this is as true in trading as it is for any other role . It also comes as no surprise as the transformation brought by automation in the trading landscape has redefined the role of the buyside trader and has created time and space for traders to delve into more intricate tasks that demand human intelligence , adaptability , and strategic thinking .
How can you ensure a best execution and a specialist service for each asset classes on a multi-asset desk ? To provide a specialist service to all internal stakeholders across a multi-asset desk it is imperative that the trader has the ability to tap into the vast wealth of resources that our trading partners provide us . There is an incredible pool of talent on the sell-side across sales , traders , strategists and research and as the trader it is your job to filter this information individually to the needs of each and every team that it will add value to internally . Even with the increased presence of technology within our execution toolkit , the human element of trading is as important as ever , a strong relationship and open dialogue allows our partners to understand our execution styles and markets helps us to achieve best execution at scale .
Operating in this way also provides traders with a more expansive view of the market . Market moving catalysts can come from anywhere and being on top of the information flow allows you to put this information in front of those who matter as fast as possible . This isn ’ t possible when it is coming from outside your silo .
By trading cross-product , traders can also provide a better high touch service for trades that come as a package . If trade and hedge are performed by the same trader for example , it is far more likely that any potential errors at the trade creation process are caught , actually enhancing the overall control framework .
How could the multi-asset trading process be further automated / optimised to make it more efficient ? Optimising the multi-asset trading process can of course be realised through further advancements in technology . While there are several providers looking to provide solutions in this space , the search for true multiasset OMS and EMS platforms has not yet reached market consensus . This , alongside further improvements in rules-based autoexecution building rules across platforms will allow traders to focus even further on the areas they can provide the greatest value , ultimately better servicing our clients .
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