GL TRADE, global provider of Front to Back office solutions for international financial institutions, will launch its new solution dedicated to Buy Side trading desks, GL Execution Management System (GL EMS), at the GL NET FORUM in London.
Given today’s constantly evolving demands for electronic connectivity and trading solutions, GL EMS offers a broad range of advanced execution tools, enabling trading for all types of listed securities on any market. It covers the complete trading desk workflow with advanced features such as: a flexible blotter for list trading, pre & post trade analytics for efficient TCR (transaction cost research), DMA & program trading tools and a complete 360° Market View (complete market depth with execution status).
GL EMS communicates seamlessly with existing systems (OMS, back office) via excel or via FIX. The system also leverages GL NET, GL TRADE’s order routing and trading network connected to more than 120 markets and liquidity pools, offering quick and easy counterparty and trading venue choices.
"Over the past months, we have seen the emergence of new and more complex needs from the Buy Side community," comments Philippe Carré, GL CONNECT Director. "From traditional portfolio management to more alternative investment styles, GL EMS answers these needs and contributes to help the Buy Side significantly increase their fund performance while totally complying with new financial regulations".
Buy Side needs are evolving…
The asset management industry is not only facing increasing competition, but also new regulations and a host of innovative new financial instruments, creating the diversification of already complex investment policies. The needs of the Buy side, as well as those of the entire industry (brokers, prime brokers, ISV, data providers, etc…), have been greatly impacted.
A changing community…
According to the FSA (Financial Services Authority), about $7 trillion are invested in mutual funds and the global market size of Hedge funds exceeds $1 trillion. Whereas mutual fund investment policies are somewhat conservative and based on long term trends, hedge funds are much more active and need adapted tools for maximum leverage and performance. The advent of the hedge fund industry has been a catalyst for the whole financial industry and now technology plays a key role in the business of buy side institutions.
Like the sell side community, the buy side is being buffeted by change and is obsessed with performance. Each position (the trading desk, the fund manager) is impacted. Whether it is internally, with the need for full STP between legacy systems and users, or externally with the development of Direct Market Access and Transaction Cost research needs, Buy Side organizations need to adapt to drive fund performance and outmanoeuvre the competition.
If it is widely accepted that markets have become more and more efficient because of technology, it is also true that technology challenges the way market participants are organized, especially Buy Side institutions. Historically, the Sell Side and Buy Side did not have the same focus: the Sell Side was more concerned with best liquidity and best price, while the Buy Side was more interested in advice and investment strategies. Technology has changed these relationships. Today, asset managers are looking to incorporate more sophisticated trading technologies, to allow them to do more than just send orders to trade blotters and then on to their brokers for execution.
Upcoming regulations such as MiFID have also imposed mandatory evolutions, making Best Execution requirements begin right at the outset of the Buy Side instructions. More and more institutions already want to compare the quality of the orders executed by their brokers. They also want to automate the relationships with their chosen brokers, with reporting in real time to streamline decision making processes (and algorithms). The Buy Side community is now also interested in direct market access, multi-broker connectivity and they want sophisticated trading tools at their fingertips, such as algorithms to execute different types of strategies as quickly and as efficiently as possible.
Buy side oriented and adapted solutions…
Traditionally, many Buy side traders have worked with spreadsheets and even though they are demanding new tools, they have to be provided in a format they want to and can use, meaning that any new trading platform must be able (pre-trade or post-trade) to import/export data into existing spreadsheet or database formats.
The Buy Side has always tended to be extremely cost conscious with regards to hardware, software and maintenance required to keep a trading system up-to-date. When ISVs target the Buy Side community, they must provide not only cost-effective but functionality-rich platforms.
Optimizing the workflow between asset managers and their trading desk is also fast becoming one of the keys to investment performance. It is clear that preventing mistakes and facilitating STP between a buy side firm’s in-house accounts, the trading desk and the markets is the best way to improve overall performance. It is therefore crucial to have a broker-neutral execution management system (EMS) able to communicate in real time, both internally with the company’s existing systems, and externally with brokers, exchanges and other trading venues.
GL Execution Management System (GL EMS): Mind to Market
To meet the buy sides increasingly sophisticated trading needs, GL TRADE presents the GL Execution Management System (GL EMS). From traditional portfolio management to more alternative investment styles, GL EMS addresses the Buy Side’s needs with a broad range of advanced execution tools for trading all types of listed securities on any market.
A flexible blotter for list trading
GL EMS is positioned as a pre-trade workflow facilitator. It allows users to easily import lists from multiple systems, such as their existing PMS, OMS or Excel spreadsheets. This can be done with a single mouse click via Excel or electronically via FIX.
Pre and Post trade analytics
GL EMS also has enriched features for Pre and Post trade analysis. GL EMS™ comes loaded with TCR analytics: Market Impact simulation with a large choice of variables, real time Implementation Shortfall calculation, etc…
The ability to compute (in real time) the shortfall against a benchmark, like VWAP, or submit the price on a child order is also on board.
Direct Market access and program trading
GL EMS supports electronic trading on multi-asset classes across multiple venues. Its capabilities range from simple electronic care orders to the most sophisticated algorithmic trading programs. Choose from the 13 pre-programmed execution tactics (% volume, trading stops…) provided by GL TRADE, or from the algorithms provided by brokers via the GL EMS.
360° market view and simplified market connectivity
Volatile markets require a complete view of what’s going on in order to make the best decision at any given time. GL EMS offers a single, consolidated market view and live, low latency data feeds from over 60 markets, ranging from the largest liquidity pools to fast growing, emerging markets. GL EMS gives users detailed market depth monitoring to the follow the status of orders in real time.
Network and Expertise
GL CONNECT, our Business line dedicated to the Buy side community, leverages our order routing and trading network GL NET, providing access to more than 120 markets and liquidity pools: equities, listed derivatives, commodities as well as Fixed Income and FX instruments. GL NET also brings together a community of 550 brokers worldwide, enabling the Buy Side to choose their counterparty quickly and easily.
Conclusion
GL TRADE has grown significantly in recent years, from a trading solutions and market access supplier to a full Front to Back office provider on cash and derivatives markets for the sell side community. Today the sell side’s needs are becoming more complex and the buy side community is demanding more electronic connectivity and adapted trading solutions. Also risk management and regulatory evolutions are becoming mandatory for both communities.
GL TRADE currently realises around 20% of its turnover (directly or indirectly) with the Buy Side community. We have created a dedicated business line, GL CONNECT, whose mission is to meet the Buy Side’s needs by adapting our technology to their business specifics.
GL EMS is geared to help the Buy Side unlock value from their trading desk and leverage performance. The system is backed by GL TRADE’s world-class and worldwide infrastructure, along with our 20 years of expertise in the delivery of electronic trading software solutions.
GL TRADE is listed on Eurolist, on Euronext Paris and has experienced strong growth since its creation in 1987. The group reported a turnover of €179.2m in 2005, a 19.4% increase compared to 2004.