Zeroflows hosted a call for Elite members with the former head of Global Trading at a major fund to discuss emerging trends and how best to approach funds, it was pointed that funds are seeking an execution only model and care greatly about these issues:
Information Leakage: Recognising the importance of the information given to local brokers, brokers are either in a position to harm or help asset managers. He warned against disclosing such information to others, nothing frustrates funds more than getting a call from another broker about their order.
Counterparty Risk: Asset managers can be restricted from dealing with certain types of institutions because of lack of credit protection and settlement processes.
Technology: It is believed that local brokers can offer what tech cannot, such as the ability to balance between leaking information and not saying anything at all. Local brokers can potentially generate interest in an idea, which a machine cannot.
Strategic Partnerships: Certain major funds work with local brokers and train them on how they wish to be serviced.
About Zeroflows: Zeroflows is an information platform that enables asset managers to improve their search for liquidity in emerging and frontier market equities. The platform currently has over 70 asset managers onboard - Global GEM/Frontier/Country level funds with dedicated AUM over $55bn. Liquidity is also provided by a network of 75 local brokers in frontier and emerging markets spanning across three continents from Nigeria to Vietnam.