Thursday, June 1, 2017

Auto trading at Barclay wealth managenebt

Business Wire:
“The capital commitment feature is the first of its kind in the industry,” said Joe Corcoran, Head of Equities. “We are delivering the benefits of both high-touch and low-touch trading to our clients in a unique way that protects their anonymity, provides them with liquidity and reduces their total execution costs. Offering capital commitment on our algorithmic strategies will help to drive workflow efficiencies for our clients and strengthen Barclays’ position as a center of liquidity.”
I am plowing through the jargon on this, the first step is translation.  They use 'high and low touch clients' to distinguish between the more passive and more active investors.  The system allows clients to bock  set up a series of conditional trades based on liquidity conditions.

With the capital commitment feature enabled, a portion of the client’s order is automatically transferred to Barclays’ central risk management book, thereby providing the client with instant liquidity as well as saving them the execution cost associated with that portion. The firm soft launched the feature with a small group of clients with very positive feedback.
The real action is the risk management which we can call a form of AS&L technology that is automated.   

Joe Corcoran [team leader]  added, “As Barclays continues to work to attract diverse sources of liquidity and aggregate them across our entire Equities franchise, our clients benefit from both the unique liquidity we can provide as well as our enhanced ability to partner with them on risk trades.”

There we have it, really an internal S&L technology pretty much as the Redneck trading architecture would have it.  Some things are not clear, especially the language, but the main point is simple, autotraded cash. 

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