Welcome to the latest edition of At the Forefront: Fintech Conversations!
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In this installment, Forefront VP and Head of Content Sam Belden is joined by Bryan Gibbs, SVP and Director of Transition Management at CAPIS, a compliance-driven institutional broker that focuses on trade execution and commission management. Sam and Bryan discuss the role of a transition manager, key considerations when planning a transition event and what a transition plan could look like in practice.
Bryan gives a brief overview of transition management, describing the practice as assisting with the restructuring of asset allocations with the goal of minimizing costs and risk. Through a pre-trade analysis of assets and a thorough understanding of the client’s goals, transition managers provide the expertise to help clients navigate a transition event and reach their individual goals, whether moving into a new market or rebalancing a portfolio.
The pair then discusses some of the most important factors firms should consider when determining whether to engage a transition manager, and the most important steps clients can take pre-trade to set themselves up for success. Sam and Bryan share insights on the various cost considerations in a transition event, examining both explicit costs (commissions and fees) and implicit costs (spreads, market impact, volume and volatility).
Bryan discusses what goes into CAPIS’ typical pre-trade and post-trade analysis, and the best benchmarks for assessing the success of a transition (hear more from CAPIS on benchmarks here). Lastly. Bryan breaks down the distinct steps that go into the implementation of a transition plan, emphasizing the importance of client transparency and open communication.
Tune in to gain the full insights!
If you’d like to learn more about the work that Bryan and his team do at CAPIS, you can visit CAPIS’ Transition Management Resource Center.
See below for a breakdown of what was discussed. Happy listening!
Timestamps:
1:00: Defining transition management and the role of transition managers
3:25: The most important factors for firms to consider when determining whether to engage a transition manager
5:10: Key pre-trade steps firms should take when preparing for a transition event
8:30: Important cost considerations for a transition event
14:15: Best strategies to manage a transition event and how to best measure success
20:30: Discussion on the implementation of a transition plan
24:00: The post-trade analysis process
