EBS BrokerTec’s acquisition of Molten Markets to create a new business called EBS Institutional is predicated on a view that asset managers are becoming increasingly sophisticated in their search for best execution and usage of algorithms, the head of the new unit told FXAlgoNews.
“I think it’s very clear that there has been very significant growth in adoption of the use of algos by asset managers, and I personally see that continuing,” said Simon Wilson-Taylor, who has been CEO of Molten Markets and will now head up EBS Institutional. Wilson-Taylor said the asset management world has been using outdated platforms that haven’t fundamentally changed for some 15 years or so and don’t take account of how execution is performed and how trades are measured. He added that the new business will provide a TCA package which can allow them to compare and contrast across algos rather than relying on the TCA provided by each bank, given that different banks will have different TCA methodologies. Some basic algos that allow TWAP-type executions are also built into the platform, both for spot FX and for swaps and outrights. “So for people who want to do simple things and do it efficiently within the platform, we provide it, and if they want to connect to their banks we connect them to their banks as well,” he states.