Following last week’s column I am obviously in the bad books of a small number of buy side firms and as such I intend, in true fashion, to dig myself in a little deeper today. There is a trend in the buy side, indeed business generally, that makes peer-to-peer matching on any reasonable scale even […]
Tag: asset managers
After a week-long absence Profit & Loss‘ managing editor, Colin Lambert, and editor, Galen Stops, are back on the airwaves to discuss some of the most eye-catching items in the news recently. They begin with some reader feedback from stories published last week. Firstly, a story about the attempt by a futures exchange to introduce […]
Simon Wilson-Taylor, head of EBS Institutional, reflected at Forex Network Chicago on the challenges that he faced as the owner and head of a fintech firm, Molten Markets, prior to being acquired by EBS.
“The first thing that I would say to any budding entrepreneurs out there is that building something, building a product, is the fun part and the easy part. Even finding clients is relatively easy,” said Wilson-Taylor, before adding: “The really difficult part that’s kind of out of your control is: how are my clients going to react? How is the market going to react? What are my legal, regulatory and insurance obstacles?”
Going through the different business lines that Molten Markets operated, he explained that consultancy is a good way for fintech firms to generate some revenue and pay some bills as the barriers to entry are not particularly great.
A new study by State Street indicates that 68% of institutional investors are concerned about their ability to hit their growth objectives within the current market environment.
The survey also found that 72% of asset owners expect to adopt a more defensive investment strategy going forward and the same percentage of asset managers will slow their plans for expansion over the next five years.
State Street’s second Annual Growth Survey talks to more than 500 global asset managers, asset owners and insurance companies.
The band is back together again in this week’s podcast as Galen Stops returns from a short holiday to join Colin Lambert to discuss all things currency – this week (much to the relief of P&L’s audio engineers) with no interruptions from wildlife or pool attendants!
Listen is as they highlight growing concerns in the industry that it may be harder to spread the word about the FX Global Code than previously thought, thanks to the realities of life on buy side and vendor side. On the subject of transparency and ethics, Lambert is keen to talk about the new phenomena of “full amount” trading in FX markets and Stops expresses his feelings about the proposed Code of Conduct for cryptocurrency markets.
As always there is room for the random, so why does Lambert want a merger between the new digital assets association and the recently renamed Wholesale Markets Brokers Association? Listen in to find out.
Benchmark fixes have been immersed in controversy for the past five years, but anecdotal evidence sees no shift in asset manager attitudes to them. Colin Lambert asks, will these firms ever desert the Fix?
If there has been one lightning rod for controversy in what has been a pretty turbulent period for the foreign exchange industry it has been benchmark fixes. Banks have been fined, traders and managers have been dismissed, and some are facing legal sanctions, including jail, thanks to various activities all of which were centred on the WM and European Central Bank fixes.
State Street Corporation has entered into a definitive agreement to acquire Charles River Systems a provider of investment management front office tools and solutions, for $2.6 billion. The acquisition, which is subject to regulatory approvals and customary closing conditions, is expected to be completed in the fourth quarter of 2018.
State Street says that the integrated systems will enable it to deliver “a global front-to-back platform for asset managers and asset owners that will be unique in the investment servicing industry”.
The FX industry is a vibrant, innovative place, but sometimes I think it forgets why it exists. This amnesia means as an industry, FX does not respond sufficiently on those occasions when people with no understanding of the nuances of the business suggest “improvements”.
So many news threads running through the industry at the moment seem to be idealising a totally transparent, all-to-all trading environment. This works in domesticated markets like equities, but it doesn’t work in global, institutional markets like FX – especially when we remember why we are here.
Two and a half years on from acquiring Molten Markets, EBS is beginning to claim some tangible traction amongst the asset management community.
When Molten Markets, founded in 2012 by State Street alumni, was acquired by then-EBS-BrokerTec in 2015, there was a clear logic to both sides of the deal. For EBS, the move was part of a broader strategy to diversify the brokerage’s existing client base, while for Molten Markets being part of a larger, more established company with superior financial resources made its platform a more attractive proposition for the asset managers that it was targeting.
However, while the logic was clear from the start, progress in getting asset managers live on the platform, now branded EBS Institutional (EBSI), has been slow.
The paper has been a long time in the works, so the IA’s proposed guidance around last look may not burst the bubble of those optimists who think last look is a dead issue, but it should concern providers that their clients apparently think they don’t go far enough. That said, I also think this paper highlights how the buy side can be too demanding around certain issues when it could focus on having a more positive impact by doing something itself.