Leadership insights from FILS Amsterdam 2018

Published on 8 November 2018

Trader TV captured the most surprising and interesting takeaways from:

Paul Reynolds, head of fixed income at TradingScreen;
Frank Cerveny, head of markets at MTS;
Mike Thorpe, managing director, Tradeweb;
Giuseppe Nuti, managing director and global head of the central risk book and data analysis at UBS;
Lee Bartholomew, head of derivatives Product R&D for Fixed Income at Eurex;
Richard Colucci, head of sales, Algomi;
Scott Eaton, CEO, Algomi;
Henry Wallis, WBR.

Speaking at the Fixed Income Leaders Summit, held in Amsterdam between 6-8 November 2018.

Hamish McArthur Hello, I’m Hamish McArthur, and I’m here at the WBR Fixed Income Leaders Summit, this is Trader TV. What would you say is the most surprising issue being over here?

Paul Reynolds It’s got to be clients who’ve got OMS’ that don’t allow them to connect to new venues. That’s really the big surprise here. They want to get to new sources of liquidity that tracked within their OMS, and they can’t do it.

Frank Cerveny If you look at machine learning, right now it’s very democratic and it’s very much open to everyone. And that’s what we try to do at MTS. I think the question is more what happens in the future as the markets evolve? We see on the sell-side, different players investing vastly different amounts of money into these processes, and it’ll be interesting to see if one entity or a few start to dominate, such as what we’ve seen in the tech sector.

Mike Thorpe I think there’s a lot of focus on electronic execution and particularly on the automation of execution. I’m not sure whether it’s surprising, but there’s a very strong interest in that theme from clients in the lead up to the conference and already in the conference.

Giuseppe Nuti There’s a lot of talk about cryptocurrencies, and we were discussing it earlier on, and I think it’s, it’s interesting to see whether cryptocurrency, but more, here more interestingly, there’s block-chain  technologies and how they could apply. And I think there are some interesting solutions being thrown out there. Some are controversial for sure. But we’ll watch this space with interest.

Lee Bartholomew What is interesting is how many technology firms are being built on the back of this market structure change that has been witnessed within the European market. So for me, I think what’s interesting is not so much the data, but it’s how you use that data in order to get an edge if you’re on the buy-side, but also as an infrastructure provider, which is largely what an exchange is.

Richard Colucci How do you bring the entire market together and have a snapshot from a data perspective, and then effectively leveraging that foundation to accelerate automation in the execution piece of the equation?

Scott Eaton The most surprising issue in many ways is around best execution which is probably also the most controversial issue today. The reason I find it surprising, but shouldn’t, is because there’s yet to be a real definition of what best execution is. Part of that is the nature of credit as an instrument, or fixed income generally as an instrument, because you can’t just transport the rules that we have in equities into fixed income. That’s always been the issue around MiFID II, if you will, as well. That notion that regulators try to pick up and move stuff, it doesn’t really work in our world. So, I think it’s really an interesting spot to see how the world evolves, and it’s surprising to me that we continue to wrestle with that now.

Henry Wallis We are interested in change as a business, and we think it’s important that people have an opportunity to get together to discuss how this change is going to impact their business.

Hamish McArthur I’m Hamish McArthur and this has been Trader TV at the WBR Fixed Income Leaders Summit in Amsterdam. You can find us on Twitter, LinkedIn, and of course, TraderTV.NET.