Services

The independent, broker-neutral dealing desk for Investment Managers

Empowering Investment Managers to focus on making investment decisions

Increasing regulatory requirements, the rise of passive investing and ever greater margin compression have led to a challenging environment for the asset management community.

They need to invest in innovative tools and technologies to take advantage of new liquidity opportunities and deliver returns for the end investor.

Ensuring execution performance is not undermined by legacy technology

With BTON Financial’s insourced dealing desk technology, Investment Managers can reduce operational overheads, streamline operations and simultaneously improve execution outcomes for their end clients.

We enable buyside firms to take full advantage of the emerging execution opportunities by managing connectivity to all liquidity venues, the underlying trading technology and broker connectivity requirements.

Removing operational overheads and costs; achieving economies of scale

We automate orders and workflows to ensure our customers can focus on improving investor outcomes rather than building and maintaining legacy technology stacks in-house.

Through our ever-growing broker relationships we ensure connectivity to all liquidity venues and manage the underlying trading technology and broker connectivity requirements.

Services and Models

We help their Heads of Trading translate data-driven insights into trading and execution performance.

With our dealing desk technology, Investment Managers retain complete control over their broker and execution relationships.

Models most commonly in use across our investment management clients:

Hybrid insourcing

We complement our clients’ existing trading operations with tech driven, insourced dealing desk capabilities. This enables Heads of Trading to automate a proportion of their activity and focus on adding value.

Complete outsourcing

We offer a fully outsourced, technology, data and analytics driven dealing desk for firms looking to automate trading activity, reduce operational overheads and improve execution performance.

Trading Desk in a Box

Small and early stage Asset Managers use our ‘trading desk in a box’ offering a quick route to market, scalable for future needs and to avoid operational overheads.

Managers can be confident that their investment mandates are executed in the smartest and most efficient way, taking advantage of emerging liquidity opportunities and returning value to the end investor. At the same time, they can evidence best execution for compliance and internal reporting.

Our Smart Broker Router

We offer a broker neutral dealing desk to ensure that our interests are aligned with those of our asset management clients. Our brokerage arm won’t benefit from your flow, because we don’t have one.

We manage your existing broker relationships, connect to your preferred broker list and act like an agent on your behalf, giving you the confidence that your investment mandates are executed in the smartest and most efficient way.

At the same time, we enable you to connect to our ever-increasing network of brokers to improve access to liquidity, better prices and reduce brokerage rates.

A Broker Neutral Smart-Broker-Router

Our award winning broker neutral ‘Smart Broker Router’ automatically selects the most appropriate broker with the most appropriate execution algorithm to improve execution outcomes and returns for the end investor.

Here is how we do it:

  • We consolidate execution data across our platform and ensure that post-trade analytics and insights gained continually enhance our existing routing logic and processes
  • We anonymise and share non-proprietary, consolidated data sets whilst maintaining confidentiality to improve trading performance for individual users, something that would be cost prohibitive for many firms to do on their own.
  • Individual Asset Managers now have the ability to leverage anonymised data from across their peer group. Portfolio Managers will be able to check if a trade was executed at best price compared to all the other trading venues at exactly that moment in time.
  • Every trade can also be benchmarked with the ability to receive end-of-day reports broken down into various metrics including broker performance, trading venue and/or volatility, as well as the ability to examine outliers.
  • Because data is anonymised and aggregated, benchmark performance by brokers can be measured on a much more accurate basis than if a firm were to try to do this independently.
  • There is no risk of information leakage because the trading data is anonymised before the benchmarking process, added to the fact that we are completely independent, with no relationship to brokers.
Coverage

Our dealing desk covers: real-time pricing, order management, liquidity aggregation, pre-trade risk and compliance components, best execution and transaction reporting / TCA.

Our platform receives orders over FIX protocols; orders are validated and reported in real-time, offering the trading desk the flexibility to customise validation rules.

Pricing

We operate on a subscription fee basis, which means our clients’ pricing model is significantly lower. We charge a fixed cost for the trading desk, with a fee charged by the bank/broker relative to how much you trade. This leaves us free to pass on your orders without any pressure to increase your trading volumes.

Our Partners

We believe in taking a collaborative approach to solving the complex challenges facing the asset management industry.

We are an active member of The Investment Association’s Fintech Community and delighted to be listed amongst ‘the fintechs to watch’.
We are also members of the FIX Trading Community and Innovate Finance.

If you’d like to improve your trading performance with our Smart Broker Router please get in touch. We’d love to hear from you.