How are automated traders exploiting cross- and multi-asset trading opportunities and how are suppliers supporting increased demand? These topics and more were discussed by our panel at the FIA

Rising to the Cross-Asset Challenge

With:

Chris Lee, Head of Market Access, Fortis Global Clearing
Mark Thornberry, UK Managing Director, RTS Realtime Systems
Larry Geraghty, SVP, Institutional Sales, MF Global
Derek Sammann, Managing Director – Head of FX Products, CME Group

Where do you see most demand for multi-market and cross-asset trading?

Lee: The biggest growth area we see is Asia, both US and European firms into Asia and Asians into Europe and US. We’ve seen a large growth in interest in Asia from US firms recently. There is much anticipation of growth in China and the Asian region in general, bringing a surge of interest from outside the region.

Thornberry: Hedge funds have been doing cross-asset trading for alpha capture for some time. In London, we see a number of proprietary trading firms exploring both new markets and relationships across markets. Vendors need to respond with solutions that service this, not only with flexible execution tools but also, for example, with data centre access to support clients’ connectivity requirements.

Geraghty: Traditional asset managers, notably pension funds, are perhaps slower to move than hedge funds. Also some instruments and technologies are not yet authorised by the funds’ investment committees. But the picture is changing fast.

Sammann: We see this demand from various buy-side client segments – hedge funds, institutional clients, prop shops, CTAs and retail. As an exchange that provides trading in multiple asset classes on a single platform, we see customers moving from model-based trading in FX to interest rates or expanding their trading activities from a single asset class to others such as equities or energies. Hedge funds and prop shops have been most active in this space, but more and more institutional and retails clients are now adopting multi-asset class trading strategies.

Left to right:Chris Hall,Automated Trader; Derek Sammann,CME Group; Larry Geraghty, MF Global; Mark Thornberry,RTS Realtime Systems; Chris Lee,Fortis Global Clearing

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