Technology and innovation continue to disrupt industries and businesses around the world, and the investment management industry is no exception. Regulation – in the form of MiFID II – now adds a new challenge to an industry already wrestling with technological change in both equity trading and research.
In a conversation with Traders Magazine, Tourmaline Partners CEO Aaron Hantman and Managing Partner Tim O’Halloran discuss how these trends are impacting their business.
John D’Antona: This is not an easy time to be a broker. Passive management’s impact on your core client base, technological change and new regulatory compliance requirements are just three of the challenges. Yet Tourmaline Partners grew last year. How is that?
Aaron Hantman: While we are a registered broker-dealer, Tourmaline Partners is structured and operates much differently than what most people think of as a broker. Our major differentiator is that, for all intents and purposes, we function as a “buy-side” trading desk. Given our size – last year we traded over $120B in notional value — we are covered by an extensive global network of 350+ brokers, allowing our clients to benefit from a breadth of relationships that many would almost certainly not have the scale to obtain on their own. We face off with the sell-side on our clients’ behalf and we use an expansive execution and analytics tool set to access superior liquidity and pricing. We deliver an un-conflicted trading experience, which means that we do not cross blocks of stock or shop order flow, ever. In doing so, we provide institutional clients with a global high-touch trading solution aimed at helping them define, measure and achieve best execution in listed equities and options globally. We’ve built our business not only on skill and expertise, but on client service as well.
To read the full interview, click here.