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Alternative Market Briefing

Study says interaction between trading desk and portfolio managers is crucial

Wednesday, November 01, 2017

Komfie Manalo, Opalesque Asia:

A study by research and advisory firm Celent titled Managers Want Their Order Management and Portfolio Management to be One and written by Celent's Securities & Investments practice Senior Analyst Jay Wolstenholme, said that as asset managers continue to develop their trading desks, the interaction between the trading desk and portfolio managers is crucial.

"The right technology and quantitative tools can give the buy side trading desk the information they need for trade analysis and execution and most importantly the quantitative data to communicate to the PMs," Wolstenholme.

He said that the aggregation of transactions and positions is the base layer, and buy side vendors continue to closely integrate order management systems (OMS) and portfolio management system (PMS) solutions to achieve this enterprise goal.

As asset managers build out their trading desks, the interaction between the trading desk and portfolio managers is critical in achieving incremental precious basis points. Buy side traders are an important ingredient in maximizing portfolio return by minimizing execution costs and shortfall risk utilizing multiple go-to-market execution strategies and tactics.

The ability for portfolio managers to gain incremental basis points across their investment through their trading desks is a major positive. Portfolio managers are learning to trust their tradin......................

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