Resource center.

Journey with us as we explore today's most innovative investment topics.

Importance of Manager Selection and Diversification in Venture Investing

“US Venture Exit Value Achieved $290 Billion in 2020 Alongside Record Years for Investment and Fundraising Activity,” - the National Venture Capital Association, January 2021.

Buy Side Algorithm Selection

A recent Greenwich Associates survey identified five groups of trading algorithms that accounted for three-quarters of the algo executions in US equity markets. This article considers the types of buy-side trading strategies and the required execution outcomes that drive the selection of the algorithm.

Where’s the Algorithmic Trading?

As the S&P 500 steadily trended upward throughout April, I noticed again that the financial news media were neglecting algorithmic trading. I can guarantee though, that the effects of algorithms on market moves will become a hot topic again as soon as we experience a strong downward trend.

The Impact of Risk-Parity Strategies on Market Moves

Deutsche Bank recently published their list of market risks for 2019. Topping that list is “Algo-driven, risk-parity driven fire sale in equities and credit continues.” In a previous article (insert reference) I discussed the impacts of algorithmic trading, but this article is focused specifically on risk-parity strategies.

The Impact of Algorithmic Trading on Market Moves

As the US equity markets closed on Tuesday December 5, 2018, with the Dow Jones Industrial Average down nearly 800 points and broader markets off more than 3%, CNBC’s Fast Money panel engaged in a spirited discussion regarding the impact of algorithmic trading on the market moves. The consensus? Algorithms accelerated market moves, both up and down.

The Impact of Quant Trading on Potential Market Corrections

As US stock markets came off recent highs, it was noted that other markets were more strongly correlated with equities than in the past, making hedging of downside stock market risk more difficult. Investors typically hold a portfolio of bonds and stocks, as bond prices tend to rise when equities fall and there is a “flight to quality” as investors seek the relative haven of bonds. However, with low interest rates and the chance of more rate-cuts slim, bond prices aren’t moving enough to offset the impact of falling equities.

Managing Inherent Risk in Electronic Trading

In modern financial markets, most of the trading volume is executed electronically. E-trading has been expanding, not only in the speed and sophistication of the computer models and infrastructure, but also through expansion to new asset classes and markets. The expansion in e-trading will continue, and innovations such as machine learning and artificial intelligence are sure to add further complexity.

Index Rebalance Trades

As assets held in funds that track broad equity-market indexes in the U.S. exceeded those in actively managed funds for the first on August 31, I thought it would be worth revisiting the impact of index rebalance trades on stock prices.

A Practical Overlay for Model Risk Management

As other markets started becoming more electronic, our quants started seeing opportunities to flex in these new areas. The huge spot FX markets, with trading around the clock, seemed like fertile grounds for the quants, so we started to trade on electronic platforms like EBS. 

Blockchain and the Securities Markets

Blockchain technology will play a significant role in the further evolution of global securities markets

Smart Cities Primer

Smart cities will grow in number as people, governments, and businesses rethink the way they interact and plan for growth.