FILS 2022: Buy-siders highlight key themes of liquidity, technology and connectivity

Ines de Tremiolles

During the opening session of the Fixed Income Leaders Summit 2022 (FILS) in Nice this week, the buy-side keynotes interviewed identified key themes such as technology, connectivity, liquidity and diversity as defining elements of the year for the fixed income market.

In the conversation between Inés de Trémiolles, Global Head of Trading at BNP Paribas Asset Management and Yannig Loyer, Global Head of Trading, Securities Finance and Derivatives at AXA Investment Managers, a key point was that these themes are all interconnected and cannot be viewed independently, but must be organized in combination.

“To get data, you need connectivity,” de Trémiolles explained. “Today, with connectivity, with all the different platforms and systems we have, we can go much faster, capture better bid gaps. In doing so, we create data, and when we have data, we can analyze it and find out more.

“We talk about machine learning, but first we have to talk about human learning – what lessons can we learn to improve our trading in the future. So connectivity is also about human relationships.

“We talk about machine learning, but first we need to talk about human learning – what lessons can we learn to improve our trading in the future.”

Loyer also highlighted the importance of tailoring solutions to buyer-side requirements. “We need technology that adapts to the environment we find ourselves in and meets the challenges we face. There are many solutions, but there are still black holes, with very manual processes – like integration, where the technology still lags behind. Every onboarding step is still manual, pretty much, from KYC. »

Regulation was unsurprisingly another point of attention, with consolidated bands, transparency, post-Brexit compensation reciprocity and corporate social responsibility (CSR) rules identified as important themes. Loyer stressed that: “We have to look at what happens in the future as well as follow what happened in the past”, and de Trémiolles agreed. “By the time the rules come out, you should already be ready to put them into practice, so you should always look to the future.”

She also reminded the room that “regulation on the buy side is key, but we also need to follow regulation on the sell side, as this can also impact pricing. It’s hard to decide what to focus on because there’s so much out there all the time. The important thing is to sit down and understand the key risks you need to mitigate, then implement them across the team, involving all internal stakeholders.

According to an audience survey, having the right data is the most important factor for an FI trading desk to position itself on the buy side this year (43%), while technology connectivity comes second (22%) and employs good traders who understand the fixed income market came in third.

“Liquidity, diversity and motivation of younger generations” were also highlighted as crucial for the development of the office in the future.

Comments are closed.