All market participants have felt their margins tighten in the post-crisis regulatory squeeze. As the competition for liquidity from traditional providers has grown, agency algorithms have emerged as a remedy for the increasing inefficiencies and diminished liquidity in the fixed income markets. Not only do these sophisticated algos smartly work orders, but they also open the way for valuable transaction cost analysis.
|Jonty Field, Head of EMEA, Quantitative Brokers|
Quantitative Brokers (QB) is a leading provider of algorithms to the futures and fixed income markets, which will soon be available on the TT platform. We sat down with Jonty Field, Head of EMEA, to better understand QB’s unique approach to agency algorithms and what they have to offer users on TT.
TT: Let’s start at the beginning. How did QB get started?
Jonty: QB was founded in 2008 during the financial crisis. Robert Almgren and Christian Hauff, both at a large sell side institution at the time, realized that fixed income traders were lacking the quantitative execution and cost measurement tools that were so valuable in equity markets. It would have been difficult to build these tools within a large bank, because the challenge of providing everything to everyone coupled with the requirement that it be distributed across different desks and regions, resulted in numerous, complex obstacles.