[ BUY-SIDE COVER | DEGROOF PETERCAM ]
the landscape as a whole. In this vein, the trading heads explain that it is in particular the impact of the speed of information dissemination and the acceleration of decision-making processes spurring that evolution.
“[…] As the trading environment is becoming increasingly data driven, the ability to collect, harmonise, and act on large volumes of information in real time is now a critical component of success. This shift has required us to ensure that our team is equipped with the skills necessary to navigate this new reality,” says Bille.
Indeed, the Degroof Petercam buy-side offering is demonstrably dedicated to exactly this.
Renna adds that the important takeaway is that of course these new skills do not replace the traditional ones, instead building on that foundation, which he asserts“ must remain impeccable”.
“ Traditional skills – such as intuition, market expertise, and relationship management – remain critical but are now complemented by proficiency in coding and data science.”
“ Data management augments the trader’ s capacity, enabling them to deliver meaningful value. It allows us to deliver a high touch execution experience, but in a way that is highly scalable: efficient, targeted, and quick.”
Speaking to the firm’ s empirical approach to the industry’ s changing tides towards a more electronified status quo, Renna explains that data input sources are assessed carefully, integrated tools focused on incorporating live data in the firm’ s trading processes.
The buy-side desk relies on external providers for pricing and inventory( axes) data, allowing the team to efficiently select or avoid certain dealers on specific trades- or identify alternative sources of liquidity when a given strategy cannot be implemented at decent prices, says Renna.
Overall, the team relies on a combination of precise market knowledge and advanced technology to effectively incorporate relevant live data into its strategies.
“ What we define as‘ high-touch execution with scalable efficiency’. This approach strikes a balance
PHILIP BILLE between two critical components: the expertise, intuition, and judgment of the human trader on one side, and the power of technology, data, automation, and AI on the other,” affirms Bille, adding that he is confident that the ideal model will remain a hybrid approach.
A strong network underpins effective trading Fixed income markets are naturally fragmented, in large part dominated by OTC trading, however, electronification has reached even this most rigid asset class.
When it comes to how the desk manages the increasing complexity, how the team organises their network has been key to delivering results.
“ Having a well-structured and diverse network is essential. At Degroof Petercam, we’ ve built strong relationships with a wide range of global, regional and local counterparties, which allows us to access liquidity and pricing across a broad spectrum of instruments,” says Bille.
Renna highlights in particular the complexity of emerging markets, which need more attention in order to be successful, with the buy-side team focused on the operational needs when it comes to accessing these markets.
“ Our role is to bring this knowledge as close as possible to the trading desk, so that traders operate with a clear understanding of their counterparty network and its constraints. In that sense, we view network management as a genuine area of expertise- one that underpins effective trading.”
For both Bille and Renna, another critical aspect of managing such a fragmented market is fostering those relationships with
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