CurveGlobal Leads the Way in Best Execution Discussions

CurevGlobal MiFID II event

CurveGlobal Leads the Way in Best Execution Discussions

A hundred members of the extended futures community attended an invite-only conference on the impact of MiFID II at the London Stock Exchange Group headquarters on Monday. The event, organised and hosted by CurveGlobal, shone a bright light on the needs for greater transparency and interoperability between industry trading and clearing venues.
 
With the Jan 3, 2018 start date for MiFID II looming, it was agreed by all speakers that the time for action was now and that a well thought-out strategy for best execution is imperative.

After a rousing call to action from CurveGlobal CEO, Andy Ross, the event continued with an impassioned talk by Robert Barnes, CEO of Turquoise, on how and why markets benefit from increased competition and industry co-operation. Giving the examples of the migration of Bund Futures from Liffe to Deutsche Boerse 20 years ago, and the experience of Turquoise over the past year, he explained how success rarely comes overnight but that when it comes it can be long-lasting. It was also pointed out that CurveGlobal has already obtained a 1-2% market share – in less than a year – well ahead of previous examples when "David" has taken on "Goliath".

CurveGlobal’s Richard Walker gave some examples of how Open Access can create portfolio efficiencies that can drive tens of millions in capital savings, simply by allowing the cross-margining of positions.

Two great panels followed with representatives from an array of industry participants, including BestX, Bloomberg, ION Trading, iTarle, LiquidMetrix, OpenGamma and Quantitative Brokers. Through the session, there was broad agreement that best execution was much more than a regulatory obligation; it was a potentially offensive instrument for participants. All panellists recommended the creation of clear, achievable and dynamic best execution policies, that should be used as a business tool not a legal or compliance document to gather dust.
 
Participants also discussed the need for smart order routing and combined order books as mechanisms to drive returns, adding weight to the need for robust (total) transaction cost analysis.

It was a great community event which no doubt will be followed by others before the end of the year and the long-awaited introduction of MiFID II.

CurevGlobal MiFID II event

CurevGlobal MiFID II event