Axioma CEO quoted in the August edition of Buy Side IT magazine
Buy Side IT
August 1, 2002
New York - London
Vol 2 No 7
by Richard Collings
Hedge Funds Take Lead in Tech
Sebastian Ceria, chief executive and president of New York-based modelling
and optimization technology vendor Axioma, feels one of the most
interesting issues raised by hedge funds that may eventually make its way
over into traditional money managers is the blending of trading and
management practices. He says blending may eventually happen in the
mainstream, as firms start to seriously consider transaction costs and
market impact.
"Traditional money managers may have already begun to provide their
traders with alternatives or some flexibility in executing trades, rather
than just a list of possible trades," Ceria says. "But at this stage it is
more of a discussion -- no-one's jumping on the bandwagon yet. Money
managers may want to give traders some leeway, but don't want to give too
much flexibility -- managers want to keep control.
"Ultimately, traders and managers will at least take a look at each
other's applications to find a way of more closely integrating the two
desks," he adds. "Traditional money managers may eye the more
sophisticated optimization of hedge fund managers to incorporate market
impact."
