By Ivy Schmerken
With buy-side firms ready to extend electronic trading in equities over to multiple asset classes, Credit Suisse AES (Advanced Execution Strategies) is expanding its algorithmic trading products into listed futures.
Trading Screen, the operator of a multi-product trading platform, announced that Credit Suisse algorithms for the listed futures markets have been integrated into TradingScreen's full suite of trading products.According to Manny Santayana, Head of AES Sales, Americas, Credit Suisse has been in beta test mode for both AES Futures and Options. In addition, Credit Suisse is in the embryonic stages for AES FX on the European continent and in North America.
On the buy side, Credit Suisse is beta testing with hedge fund clients and large mutual fund complexes. "You tend to look for innovative, cutting-edge clients that have a tolerance and enjoy product development," says Santayana in an interview with Wall Street & Technology and Advanced Trading.
"With this integration, buy-side clients will have the ability to direct trades to Credit Suisse across futures and equities using the front end accessing Credit Suisse's full range of global connectivity, whether it is DMA, discretionary or algorithmic," stated Michael Chin, global head of sales at TradingScreen, in the release.
There are several reasons why AES chose to integrate with TradingScreen. "They have a global presence, and futures is a very strong market on the European continent," says Santayana. Second, in the last three years, Trading Screen has developed a stronger presence in the U.S., he notes. "We think that will give us very quick distribution to a large market," adds the AES executive.
According to the release, Credit Suisse AES for Futures has been integrated into Trading Screen Futures HUB, which already has 19 brokers offering services for futures and options electronically. FuturesHUB permits the buy side to use the same platform across multiple brokers, products and exchanges with one single screen and connection. FuturesHub also supports phone orders and is backed by 24-hour, 6 day a week customer support and infrastructure.
"FuturesHUB is resolving one of the most difficult issues faced by the buy-side client trading futures and options electronically, stated Philippe Buhannic, president and CEO of Trading Screen in the release, citing "the multiplicity of screens and the complexity of post-trade management which results from it."
However, Credit Suisse is vendor agnostic, underscores Santayana. "We have a strategy to establish those relationships for multi-asset classes with all vendors that have a presence anywhere and everywhere, which has been fundamental to our success." Currently Credit Suisse has close to 50 relationships with front-end providers including Bloomberg and all the OMS providers that want to deploy the AES product for futures, options and FX.
As buy-side firms become more hedge fund-like in seeking alpha (excess market returns), they are creating strategies that combine both equities and derivatives transactions as well as FX. Since the buy side has adopted algorithmic trading to obtain best execution in equities with low or no market impact, it makes sense to pair that with listed futures trading. In fact, one reason why AES is expanding into futures is because the buy side is hedging with futures strategies in conjunction with the algorithmic trading they're already doing with AES n equities, confirmed Santayana. Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in the capital markets. As an industry expert, Ivy has reported on a myriad ... View Full Bio