we do have very good tools and
processes around that requirement,
ranging from comprehensive TCA
to best execution committees in
each region, but that’s no guar-
antee regulators consider that
It is a serious concern even for
a shop as big and well-resourced
as AGI. The asset manager has
already devoted considerable
resources to the challenge—there
are over a hundred people working
on it in the business as a whole.
And things will probably be even
tougher for smaller shops with
less resources, admits Boess. He
says that he does not know what
the first couple of weeks of trading
post-rules will look like.
“The whole marketplace is
uncomfortable with the situation.
There are too many uncertain
scenarios. There are real risks that
you will see illiquidity and volatile
trading because of technical
glitches. Or people are not trading
because they don’t know how to
Regulatory complexity aside,
Boess also has his mind on other
technical challenges in the market.
One of these is the liquidity issue.
European fixed income liquidity
has been distorted by central bank
purchases in recent years which,
Boess says, has led to the price
“The ECBs purchases are obvi-
ously impacting prices,” says Boess.