BUYSIDE TRADING 4: the FE survey

Paul Squires, head of trading, Axa Investment Managers

How long have you operated an in-house dealing desk?
The London dealing desk was formed in 1996 and merged with three other European desks in 2001. In 2006 trading and securities finance (TSF) was created, merging all asset class trading desks with the securities financing operations.

Is it centralised in one location or do you have different venues across Europe?
It covers three locations – one in Paris and two in London.

How many dealers?
Twenty-five (15 in Paris and ten in London).

How much trading is done electronically compared to voice-based trading?
Approximately 10% of our equity trading is electronically traded (non-voice) and 90% goes through FIX. Approximately 20% of our fixed-income trading is done electronically with straight-through processing via an MTF.

What is your approximate daily trading volume in euros?
€50m for equities (excluding derivatives); €310m for fixed income (excluding derivatives).

In which area would you most like to see more development?
Dark pool aggregation; consolidated tape for trade reporting.

Christoph Mast, global head of trading, RCM/Allianz Global Investors

How long have you operated an in-house dealing desk?
We set up an in-house equity dealing desk in 1995.

Is it centralised in one location or do you have different venues across Europe?
We have three central dealing desks to cover every time zone. Frankfurt covers
Europe and Africa, San Francisco covers the Americas and Hong Kong covers Asia-Pacific.

How many dealers?
We have 17 cash equity traders globally (seven in Europe) plus four derivatives and three FX traders (excluding Cominvest).

How much trading is done electronically compared to voice-based trading?
All orders are routed electronically to brokers and more and more trades are done using broker algorithms and direct market access.

What is your approximate daily trading volume in euros?
Including programme trades, we trade roughly €320m a day globally.

In which operational area would you most like to see more development?
Trade reporting and smart-order routing.

Carl James, global head of dealing, Fortis Investments 

How long have you operated an in-house dealing desk?
Seven years.

Is it centralised in one location or do you have different venues across Europe?
We have two venues in London and Paris.

How many dealers?
In Europe we have 20 dealers covering equity, fixed income, convertibles, FX and securities lending.

How much trading is done electronically compared to voice-based trading?
In equities +95%, FX +90% and fixed income +60%.

What is your approximate daily trading volume in euros?
We receive about 1,000 tickets per day.

In which area would you most like to see more development?
Smart-order routing followed by trade cost analysis.

Jason McAleer, head of global trading, Newton Investment Management  

How long have you operated an in-house dealing desk?
There has been a centralised desk at Newton since 1978.

Is it centralised in one location or do you have different venues across Europe?
The desk is centralised in one location – London.

How many dealers?
We have a team of seven dealers (four – equity; two – fixed income; one – unit trust).

How much trading is done electronically compared to voice-based trading?
About 95% is sent to our broker counterparties electronically.

What is your approximate daily trading volume in euros?
Daily turnover is in excess of €150m.

In which operational area would you most like to see more development?
More technology improvements on fixed income products; a universal approach to TCA benchmarking; centralised reporting for all exchanges, MTFs and crossing networks to improve visibility in the market.

Mark Harding, head of EMEA equity dealing, Invesco

How long have you operated an in-house dealing desk?
The current desk was established in 2008 but Invesco has had in-house dealing desks for decades.

Is it centralised in one location or do you have different venues across Europe?
We have one desk in London trading across markets in the European time zone.

How many dealers?
Four.

How much trading is done electronically compared to voice-based trading?
Even electronic orders are backed up by a phone call. The majority of trades are sent via FIX.

What is your approximate daily trading volume in euros?
n/a

In which area would you most like to see more development?
We are still rolling out some systems but I would anticipate considerable focus on smart-order routing and trade cost analysis.

Steve Wood, global head of investment trading, Schroder Investment Management 

How long have you operated an in-house dealing desk?
Since before 2002.

Is it centralised in one location or do you have different venues across Europe?
We have four central dealing desks in New York, London, Sydney and Singapore.

How many dealers?
23 for equities and FX.

How much trading is done electronically compared to voice-based trading?
Up to 50% of pan-European trades are low-touch.

What is your approximate daily trading volume in euros?
During 2008 we traded up to €115bn in cash equities.

In which operational area would you most like to see more development?
Smart-order routing, trade cost analysis and algorithms.

How long have you operated an in-house dealing desk?
Since before 2002.

Is it centralised in one location or do you have different venues across Europe?
We have four central dealing desks in New York, London, Sydney and Singapore.

How many dealers?
23 for equities and FX.

How much trading is done electronically compared to voice-based trading?
Up to 50% of pan-European trades are low-touch.

What is your approximate daily trading volume in euros?
During 2008 we traded up to €115bn in cash equities.

In which operational area would you most like to see more development?
Smart-order routing, trade cost analysis and algorithms.

Jacques Sterck, global head, dealing desk, Dexia Asset Management 

How long have you operated an in-house dealing desk
About ten years.

Is it centralised in one location or do you have different venues across Europe?
For the moment, we have one desk in Brussels and one in Luxembourg.

How many dealers?
Six in Brussels and two in Luxembourg.

How much trading is done electronically compared to voice-based trading?
For the moment, it is about 75% but it will gradually increase to more than 95%.

What is your approximate daily trading volume in euros?
Between €250m and €300m for all asset classes and between €55m and €65m for equities.

In which operational area would you most like to see more development?
Global order management in derivatives and FX; algorithmic trading; transaction cost analysis which includes the main execution venues.