The are several key things I look for as it pertains to algo selection, first would be market access. Access to liquidity is key, algos that have access to the bulk of venues, exchanges and pools that we can have our orders exposed to is critical for optimal pricing. Second, would be historical benchmark slippage, as we target various benchmarks in our execution, staying in-line or outperforming the given benchmark is very advantageous to our overall objective as traders.

Third, would be impact balancing – all orders have different levels of urgency, with higher urgency orders potentially being the most impactful, you still want an algo that prioritises best price (passive touch, mid-spread) while achieving the desired volume/completion targets.

In your opinion, what is the best strategy when it comes to assessing algo performance?

I can’t say with confidence that there is a ‘best’ strategy, given the vast scope of the market and dynamic aspects of its structure. My personal preferred strategy of assessing algo performance would be a relative/peer assessment approach versus common benchmarks in similar order types and metrics.

What’s the biggest roadblock when it comes to algo adoption?

The biggest roadblock when it comes to algo adoption is broker differentiation. Algos are a great tool for equity execution, however, amongst the standard benchmarks and strategies such as VWAP, implementation shortfall (IS) or percentage of volume (POV), it can be a challenge to select the ‘optimal’ broker algo given the close similarities they all possess. For example, targeting percentage of market volume, a pretty straightforward and achievable strategy, doesn’t normally see much deviation per broker across the normal evaluation metrics.

How is algo usage evolving?

I would say algo usage is evolving in two main ways: customisation and tech integration. Customisation in a sense that instead of a ‘one size fits all’ approach, to an industry with thousands of traders, both buy- and sell-side, executing a wide range of strategies, brokers are offering custom settings and tweaks that are best-fit for the given firm/user.

Secondly, there looks to be a big ramp in the tech integration space as algo offerings look to be more applicable and user-friendly for the various EMS and OMS. I have also seen providers leverage the abilities of add-ons and plug-ins for additional analysis and visibility on orders.

In The TRADE’s recent algo survey, 45% of buy-side traders reported using five or more providers, is this a surprising statistic?

Not extremely surprising – as a primary consideration of traders is the need to mitigate risk. With this, given developments, upgrades and occasional lapses and latency, having ample options helps preserve firm capital and minimises sunk costs in the presence of these issues.

As it pertains strictly to variability, it is somewhat surprising – as previously noted, providers’ algo suites are normally very similar in offering. However, another perspective to counter that statement is that every incremental increase in liquidity exposure you can get, counts when trying to achieve best execution.

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Federated Hermes selected Imogen Hepsworth to join its trading desk as a junior credit trader. Hepsworth was appointed to the desk at the London-headquartered asset manager after spending the last four and a half years at MarketAxess in a facilitation trading role. She originally joined MarketAxess in 2019 as an operations analyst, moving into an analyst role in the fixed income venue’s Open Trading business a year later. In her most recent role as a facilitation trader covering London and the US, she serviced the institutional client base for platform trading all-to-all and credit.

UBS has chosen Aleksandar Ivanovic to succeed Suni Harford as president of asset management upon her departure, with the appointment effective from 1 March. Ivanovic has also been elected to the UBS group executive board alongside his appointment. He joined UBS back in 1992 and has worked across every business division since. Prior to this most recent appointment, was head of client coverage and head of the EMEA and Switzerland regions for asset management. Ivanovic has also previously held leadership roles at Credit Suisse and Morgan Stanley. 

Vontobel Asset Management appointed ex-Credit Suisse senior executive, Andrew Jackson, as its new head of fixed income, replacing Simon Lue-Fong who is departing after three years in the role. A spokesperson told The TRADE that Jackson will oversee a team of 39 investment professionals in his new role. London-based Jackson was previously head of fixed income at Credit Suisse for almost two years, having served in the same role at Federated Hermes for five years prior to that. Previously in his career, Jackson spent 13 years at Cairn Capital, most recently serving as chief investment officer. 

Citi created two new equities roles, appointing from within, in a bid to drive its equity business strategy and “cement the gains made in the derivatives business,” according to an internal memo seen by The TRADE. Robert Smolen was named head of exotics trading, having previously served as head of EMEA equity exotics and global hybrids trading following his move from JP Morgan in 2017. The second appointment was that of Yohann Freoa as head of index flow trading – effectively expanding his remit to cover all clusters, having previously served as European head of flow trading. Prior to Citi, Freoa held senior positions at both JP Morgan and Goldman Sachs.

JP Morgan appointed Oliver Hall vice president, futures and options (F&O) hybrid sales trader. Hall was promoted to the role after serving at the bank for nearly 6 and a half years, most recently as associate, F&O electronic sales trader, in Frankfurt, a role he has held for the last two years. Prior to that, Hall held the same role, based out of London. This followed an 11-month stint as associate, clearing client service manager – also based in London. Before joining JP Morgan, Hall held analyst roles at Rothschild and Barclays Corporate Banking. Elsewhere in his career, Hall served as an intern at BNP Paribas, Morgan Stanley and Rothschild.

Omar Darwish joined fintech pioneer GTN as equity sales trader following a three-and-a-half-year stint at Arqaam Capital. His appointment comes as GTN continues its expansion efforts to build a comprehensive electronic trading and investment platform. Prior to his appointment as equity sales trader at Arqaam Capital in 2020, Darwish was director at Beltone Financial and before that worked as VP sales trader at Renaissance Capital. UAE-based Darwish has also worked as sales trader at investment banks Credit Suisse and Commercial International Bank (CIB). 

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Imogen Hepsworth has been appointed to the desk at the London-headquartered asset manager after spending the last four and a half years at MarketAxess in a facilitation trading role.

Hepsworth originally joined MarketAxess in 2019 as an operations analyst, moving into an analyst role in the fixed income venue’s Open Trading business a year later.

In her most recent role as a facilitation trader covering London and the US, she serviced the institutional client base for platform trading all-to-all and credit.

In her new role at Federated Hermes, she will report to head of trading, Dan Nicholls.

“We are delighted to continue our growth momentum into 2024, and welcome Imogen to our team,” Nicholls told The TRADE. “This latest hire demonstrates our ability to attract and provide a platform for some of the industry’s most impressive talent. She will be a valuable asset to our desk as we continue to go from strength to strength.”

Hepsworth’s appointment to the Federate Hermes trading desk is the second in the last 12 months after it also saw the addition of former vice president at Cantor Fitzgerald, Kendell James, in January last year.

He joined the asset manager after most recently serving as a vice president in equity trading at Cantor Fitzgerald in London and New York.

The Federated Hermes desk covers equities, fixed income, credit, foreign exchange, commodities and treasuries. It has trading teams based in London, New York, Pittsburgh and Hong Kong.

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Goldman Sachs veteran, Christopher Daur, left the investment bank to head up buy-side sales and relationships at AccessFintech. As part of the role, Daur will be responsible for strategy, product, and sales. He joined AccessFintech after most recently serving at Goldman Sachs in several roles across the bank’s various asset classes and global markets operations, most recently as a managing director focused on post-trade strategy. Prior to joining Goldman, he spent five years at JP Morgan in a range of operations roles.

Head of Europe for UK-based asset manager Federated Hermes, James Rutherford, has stepped down from his role to pursue a technology venture. Rutherford departs the investment management industry after 35 years to take on a more active role in SmartFrame Technologies, a venture which he has been chairman of for six years. He spent 19 years at Fidelity Investments as a European portfolio manager until 2006. Following his stint at Fidelity, Rutherford departed to co-found Sourcecap international, an investment management company for European equities which was later acquired by Hermes International. Following the acquisition, Rutherford spent the last 14 years as head of Europe for Federated Hermes.

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According to an update on his social media, Rutherford is departing the investment management industry after 35 years to take on a more active role in SmartFrame Technologies, a venture which he has been chairman of for six years. SmartFrame uses streaming technology to offer better control around publishing images online.

“I shall be taking up a more active role in a corporate development and investment advisory position, at an extraordinarily exciting time for the business. So I move from public markets to private markets and in doing so hopefully bridge some of the obstacles and misconceptions that arise between the two,” Rutherford said in his update.

“I love markets and investing with a passion, it has always given me purpose and drive. It brings something new every day and the learning curve never ends. I hope in my new role that I continue to learn but also draw on all my experience to pass on, help others and create something special.”

He departs following a 35-year long career in investment management, spending 19 years at Fidelity Investments as a European portfolio manager until 2006. Following his stint at Fidelity, Rutherford departed to co-found Sourcecap international, an investment management company for European equities which was later acquired by Hermes International.

Following the acquisition, Rutherford spent the last 14 years as head of Europe for Federated Hermes.

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Kepler Cheuvreux appointed Alvin Gattoc as an electronic sales trader within its New York trading team. Gattoc joined the firm from Beacon Platform, where he served as account executive. Prior to that, he spent nearly three years at Cboe Global Markets as director, US equities account coverage. Previously, he spent 11 years at Goldman Sachs serving in a variety of roles, most recently as vice president, multi asset platform sales.

Federated Hermes appointed former vice president at Cantor Fitzgerald, Kendell James, to join its trading desk. He joined Federated Hermes as an equity trader covering TMT and the consumer and luxury sectors. Before joining the asset manager, James served as a vice president in equity trading at Cantor Fitzgerald in London and New York. Prior to joining Cantor’s equity desk in 2018, James spent a year as a graduate research fellow in the US Department of Education.

Nordea Asset Management’s head of fixed income trading, Carsten Just, has departed the asset manager after almost five years heading up its credit team. Just, who is based in Copenhagen, joined Nordea AM in March 2018 as head of fixed income trading, after a number of years running and founding fintech firms including simplefintech.com. He previously spent three years as head of trading and prop with Danish financial services and insurance group Alm. Brand, prior to which he worked as a portfolio manager and client executive with various banks including SEB Merchant Banking, Danske Bank and ATP. In a social media update, Just explained that: “I have decided to explore a new path focusing more directly on developing the technology, data and market structures needed to support the evolution of markets.”

Liquidnet’s former global head of equities, Rob Laible, joined BMLL as its new head of Americas. Laible joined BMLL based in New York after spending the last eight years at Liquidnet, serving in various senior equities-focused roles. Prior to joining Liquidnet in 2014, Laible spent a year and a half at Maquarie Group as its head of program trading and electronic execution for Asia and around four years at Nomura Securities in various cash and program/electronic trading roles. Previously in his career he also spent 10 years at Lehman Brothers in sales trading and prime brokerage sales roles and 11 years at ITG as an executive vice president.

Multi-asset liquidity and trading technology provider BidX Markets appointed Harry Fry as its new head of APAC. He joined BidX Markets from Invast Global, where he served as director of prime services. Prior to that, he spent five and a half years at Finalto, initially as a trading solutions analyst and later in an institutional business development role. Previously, Fry served at JP Morgan Asset Management as an oversight analyst and a UK funds consultant. Based in Australia, Fry will help grow BidX Markets’ institutional trading business in the APAC region.

Former Berenberg equity sales trader Matt Beswick took on a new position as equity and macro trader with Monaco Asset Management (IO hedge fund). Beswick joined Berenberg in May 2021, prior to which he worked in electronic trading with Credit Suisse for almost three years.  

FX options trader at Investec, Richard Hall, left the financial services company to join Abu Dhabi Commercial Bank in the same role. He joined from Investec where he spent five years. Previously, he served as an analyst, corporate and institutional banking at Investec for two and a half years. Hall began his career as an intern at the Association of Chartered Certified Accountants (ACCA), where he served for four months.

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Kendell James has joined Federated Hermes as an equity trader covering TMT and the consumer and luxury sectors.

He joins the asset manager after most recently serving as a vice president in equity trading at Cantor Fitzgerald in London and New York.

Prior to joining Cantor’s equity desk in 2018, James spent a year as a graduate research fellow in the US Department of Education.

“Kendell brings with him a great deal of experience and expertise to our trading desk from different financial centres and across several industry sectors. He will be a great asset and addition to the team at Federated Hermes Limited,” head of trading at Federated Hermes, Dan Nicholls, told The TRADE.

James’ appointment follows the departure of multi-asset trader, Dominic Eccles, after two and a half years to join Fidelity International in a similar role. Eccles was recognised as a Rising Star of Trading and Execution at Leaders in Trading in 2021, while Federated Hermes also won the coveted Trading Desk of the Year buy-side award the same year.

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It was another busy week for people moves, with multiple career changes across the street. 

Industry veteran Ed Benson confirmed plans to retire at the end of this year, after a 43-year long career that included 17 years at SG Warburg, 16 years as EMEA head of sales trading at Deutsche Bank, and (most recently) a decade as managing director and head of European sales trading at BTIG. 

“I have been incredibly privileged to have worked at three amazing investment banks. The people with whom I have worked are all extraordinary individuals and have had a profound impact on my life and to whom I am exceptionally grateful,” Benson said in an update on social media. 

In other news, Marc Castagnera left Berenberg to join Kepler as an electronic sales trader working within its electronic distribution team, based in New York. In his new role, Kepler confirmed he will work “at the intersection of both client and execution development” in line with its strategy of growing its execution footprint and expertise. 

Before joining Berenberg in 2014, Castagnera spent three years at SSW-Trading as a trader and four and a half years as a transfer agent at European Fund Services. 

Last (but most certainly not least), The TRADE revealed that Dominic Eccles has joined Fidelity International as an equities trader, moving to the firm from Federated Hermes, where he spent the last two and a half years.  

Eccles previously spent four years at Woodford Investment Management as an equity trader and three years collectively across BP Investment Management and Legal & General Investment Management in investment operations roles. He was recognised as a Rising Star of Trading and Execution at Leaders in Trading in 2021, and joins the Fidelity International equities trading desk, working with senior equities trader Grainne O’Connor, who was voted Trader of the Year at the 2022 Leaders in Trading Awards. 

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Dominic Eccles has joined Fidelity International as an equities trader after spending the last two and a half years at Federated Hermes.

Previously in his career her spent four years at Woodford Investment Management as an equity trader and three years collectively across BP Investment Management and Legal & General Investment Management in investment operations roles.

Eccles was recognised as a Rising Star of Trading and Execution at Leaders in Trading in 2021, while Federated Hermes also won the coveted Trading Desk of the Year buy-side award the same year.

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Shaun Copeman has joined the trading desk at Federated Hermes as a senior credit trader, according to head of trading Dan Nicholls, who confirmed the new hire in a post on social media.

Copeman has 15 years’ experience in buy-side trading, most of which he has spent with Fidelity Investments where he traded bonds, FX and derivatives. At Fidelity, he oversaw execution of investment grade credit, high yield, government bonds, agencies, emerging markets and FX.

Prior to Fidelity, Copeman worked as a fixed income portfolio manager and trader at Union Bancaire Privée, following more than five years with Insight Investment where he was a senior derivatives trader across fixed income, emerging markets, FX, equities and commodities.

Copeman’s hire is the latest for the trading desk at Federated Hermes, after the asset manager hired equity trader Dominic Eccles from Woodford Investment Management in July this year.

Eccles joined Federated Hermes as a multi-asset trader after more than four years with Woodford where he traded equities. He had previously worked within the investment operations side of the business at Woodford, and has also spent time in analyst positions at BP Investment Management and Legal & General Investment Management.

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