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.”
AUTHOR
Mike Taylor
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