Welcome to the latest episode of At the Forefront: Fintech Conversations. Launched late last year, this podcast is meant to help you stay informed as we highlight key industry developments and delve into the people, companies and thought processes that keep the capital markets and fintech humming. To learn more and listen to our first episode, click here.
In today’s episode, Forefront Senior Vice President Michael Kingsley interviews two senior executives from Tourmaline Partners, a leading provider of outsourced and supplemental trading solutions: Aaron Hantman, CEO, and Tim O’Halloran, Managing Director. They discuss topics including the recent 10th anniversary of the firm’s launch, the evolution of the outsourced trading space, the similarities and differences between trading and running a business and the impact of the COVID-19 pandemic.
See below for a breakdown of what was discussed and when. Happy listening!
“Running a business like Tourmaline is just like being a trader. It helps to understand the position our traders are in, but the decisions that we make as a management team are similar to those trading decisions when I was risking capital. You make positive expectancy decisions or bets, limit your risk, understand the costs and what’s happening around you, digest the information that’s out in the marketplace and evaluate how that applies to your investment decision.” – Aaron Hantman, CEO, Tourmaline Partners
0:53 — How did Tourmaline start? Where is the firm today?
2:28 — How does Tourmaline provide solutions for clients up and down the AUM scale?
4:32 — What are the regional differences in terms of adoption of outsourced trading?
6:49 — How does Tourmaline help clients with research and commission management?
8:49 — What was Tourmaline’s founding principles? How are these embodied today?
10:56 — What is it like to transition from a trader to a manager?
15:14 — How do you recruit employees that embody the entrepreneurial spirit Tourmaline is looking for?
17:09 — What does this entrepreneurial spirit look like in the day-to-day — trading, client interactions, etc.?
18:45 — What was the decision-making process in opening a London office so soon after the firm’s U.S. launch?
22:45 — What are the barriers to entry in the outsourced trading space?
23:55 — How did the pandemic affect Tourmaline and the industry at large?
28:53 — Will traders return to the desk post-pandemic, or will we continue to see widespread WFH?