Buyside Blends Algos and High-Touch

Recession and consolidation on Wall Street trigger shifts in the

buyside/sellside relationship.

Buyside traders are relying on the sellside for expertise in both high-touch and electronic trading. “There's a continual evolution in terms of making both high touch and algorithmic trading more efficient and productive,” says John Cannon, managing director of cash trading at Credit Suisse, speaking at Markets Media's recent Global Markets Summit.

That's putting a premium on multi-asset expertise. “We have eight people in our multi-asset group who look at credit default swaps, high-yield and investment grade bonds, and other asset classes,” Cannon says. “Whether you're a traditional long-only investor or not, possessing this knowledge is key to improving the investment process.”

 Salient quotes from the full story include:

CSAs are an important element of trading but are declining in importance. “Credit Suisse creates a CSA pool for us.” —Phil DeFrancesco, head of U.S. trading, Millennium Partners

“Complex event processing and trading technology providers tend to offer more diversified asset classes, and are popular with firms willing to go it alone.” —Adam Honoré, research director, Aite Group

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Posted on March 29, 2010