Market Open: Executing the Trades- Once the market opens, Tony's focus shifts to executing trades. He maintains constant communication with brokers to negotiate prices, understand block order availability, and assess market conditions. Tony also updates the portfolio manager on trade execution progress and any challenges...
Tony wanted to work with many portfolio managers in different markets, so he opted for an outsourced trading desk that has customers who are portfolio management firms. A larger asset manager has a similar organization. A buy-side firm could otherwise maintain a trading desk and employ execution traders to complete portfolio manager orders if there are a large number of position adjustments on a regular basis or portfolio rebalancing is complicated by compliance rules. Maintaining a trading desk has costs associated with operations that may warrant using an external desk.