Proposed firm will be a registered FINRA member, Hispanic owned MWBE firm that has a sophisticated technology based offering for the institutional buy side client. Best execution services will be our core focus as we build our client distribution network. The firm will provide large bank execution services from a non-conflicted agency only platform. We will maintain in house quants and developers to deploy best execution driven strategies utilizing our strategic partner’s technology if possible. Our minority status and team’s career long relationships with the buy side (tier one asset managers and pension plans) will attract the genuine interest of clients who need to satisfy pension plan mandates.
ABC will deliver international and domestic best execution products and services to buy side-trading desks of US asset managers. Our brokerage offering will include global trading coverage of over 60 markets deploying block, portfolio and electronic trading capabilities from our 24/6 trading desk. Our clients will be able to use our electronic trading strategies in approximately 40 of the markets we offer. ABC’s team will consist of trading professionals with over 20 years of experience on average Our technology platforms connectivity will also allow us to engage the buy side with unique global natural flow. Our firm will leverage SEC rule 15a-6 “Chaperoning” which assist non-U.S. broker-dealers to gain access to Major U.S. institutional and U.S. institutional investors.
Operationally our domestic trades will clear DVP utilizing our clearing firm and international trades will net settle via commission share arrangements via a network of global and local broker dealers.
We seek well-capitalized partners with advanced technology, strong compliance processes to take a minority stake in the proposed firm. We seek partners with an infrastructure of corporate services so we can focus on being an independent boutique firm with sophisticated technology based offerings. Corporate services could include but not limited to clearing, human resources, IT services and real estate.
For equity sales & trading our Firm will offer the following advantages and capabilities:
Global Trading Access
24/6 coverage for markets in the Americas, Europe. Africa and Asia from our headquarters in New York. We provide basket, single stock execution and pairs.North and South America (US, Canada, and Mexico), EAFE markets, and MSCI emerging markets.We will have traders covering non-US trading hours live.
Veteran Team delivering boutique execution service
Our firm will market itself as an extension of the buyside trading desk, whether on a trading, technology or operational level.Our proposed trading team will have an ideal mix of traders with single stock, program and electronic trading experience in order to balance each perspective efficiently.Our trading team was previously employed by some of the largest banks and brokerage firms including UBS, JPM, Morgan Stanley, Knight Capital to name a few. We have expertise in providing passive managers with index services including predictions, announcement data and trading recommendations on start time, limit price or straight market on close.
Best Execution Technology:
The proposed firm will develop a proprietary suite of global top-level algorithms designed to achieve conflict free access for global markets.We will work closely with our clients to customize the trading solution or workflows that allows them to achieve their best execution goals.Our top-level strategies will be built to client specifications routing in a truly venue neutral manner.We will utilize quantitative models that will weigh impact vs risk while deploying dynamic anti gaming logic.Our strategies will be available in over 40 markets around the world via white label arrangements.
Quantitative Buyback Services
Corporations will benefit from our experienced trading team combined with custom benchmark and liquidity sourcing 10b-18/10b5-1 algos. Our quantitative analysis of buyback program will gives treasurer’s feedback on optimal trade horizons and potential market impact. We also consult the client on measuring execution performance via a multi benchmark approach instead of VWAP only. Our relationships, high level execution, clean clearing and payment will allow will allow us to be involved in rotations from several marquee issuers.
Un-conflicted brokerage transition services using custom algorithmic trading to minimize market impact. Our transition management service will provide the plan or asset manager with a complete end-to-end strategy, reporting and performance analysis. Our robust portfolio transition system will provide real-time performance and risk monitoring for transition’s execution cycle.
Best in Class Technology and Service Providers
We collaborate with premier providers of technology and operational services including vendors that we are familiar with like Raptor & SS&C (algo infrastructure and order management). We will first look to our strategic partner to provided existing trading technology (EMS/OMS) if possible. The proposed firm will be a broker dealer that will have a . We will work with our strategic partner to select an appropriate clearing firm and introducing broker arrangement for global trading.
Public Pension Plans
Year One Pension MWBE Certification and Outreach: We will network with and engage plan board members and state officials on our efforts in the minority community to form the correct perception of our firm. We will introduce value added forums and conferences to introduce pension board members to a diverse group of large and emerging managers with an equity investment focus. An aggressive and proactive approach with the state pension funds will help our firm gain credibility and access to asset managers who are hired to manage their funds.
Proposed firm will receive MWBE designation from the below public plans.
Chicago Public School Teachers
Fireman Annuity and Benefit Fund of Chicago
Illinois Municipal Retirement Fund
Illinois State Board of Investments
Metropolitan Water Reclamation District of Greater Chicago
New York City Retirement Systems
New York State Common Retirement Fund
New York State Insurance Fund
New York State Teachers Retirement System
Philadelphia Board of Pensions and Retirement Fund
Policemen’s Annuity and Benefit Fund of Chicago
State Teachers Retirement System of Ohio
Teachers Retirement System of the State of Illinois
Teachers Retirement System of the State of Louisiana