Technology drives trading edge
Australian fund managers could save millions of dollars a year simply by adopting more efficient execution technology on their trades, according to a company producing such technology.
Investment Technology Group’s director of sales and trading Michael Corcoran told today’s Trading Technology Conference in Sydney that the average cost of an Australian equity trade is 66 basis points and that if these costs were reduced by only 25 basis points a fund manager with a $3 billion Australian equities portfolio turning over 75 per cent a year could save around $11 million.
He said the technology was available and the savings that could be achieved were real and not just hypothetical.
Corcoran also suggested that the adoption of the new executive technology would help Australian fund managers compete in new markets.
“Australian fund managers find they must invest increasingly in Asia and other parts of the globe,” he said.
“For those competing to attract funds in an international investment environment having smart algorithms that streamline cross-border trading becomes a key differentiator.”
Recommended for you
A former AMP adviser told the Federal Court how they are scared to turn off their phone after a fellow adviser attempted suicide as Justice McElwaine said the 92 objections “weighed heavily” on his mind.
Providence Wealth Advisory Group has appointed a new chief investment officer, a dedicated position after the role was previously held by its CEO.
While hiring new staff in a financial advice practice inevitably incurs expenses, Striver’s Alisdair Barr says the greater business cost can come from losing the skills of a valuable team member.
Sequoia Financial Group has announced it is selling off its Informed Investor subsidiary which it acquired in April 2022.