Capabilities

Outsourced Trading

Cowen’s Global Outsourced Trading team provides investment managers with a first-rate, cost efficient solution for their trading needs. Our offering is full service, multi-asset class, global and is differentiated by its transparency and level of operational support. This solution, which dates back well over a decade, currently serves over 100 clients with a team of more than 20.

OUR DIFFERENTIATED MODEL

    • Our traders will execute directly with designated brokers in the client’s name – not interposing ourselves between the broker and client. This reinforces the client’s “brand” in the broker-dealer community, and also leverages our existing outsourced trading relationships with such brokers for purposes of research, conferences, corporate access, and syndicate. Traders and operational support staff truly function as an extension of client’s firm.
    • Cowen’s agency-only model avoids potential conflicts that may arise at firms making markets or trading for their own accounts. Our clients maintain complete anonymity with regard to their orders and each order is handled with the utmost discretion.
    • Cowen will connect to any existing EMS/OMS via FIX and transmit all necessary end-of-day reports and files using systems such as OASYS. A complete reconciliation of all activity with client’s prime brokers and custodians will also occur next day. Cowen can provide and support trading technologies for the benefit of the customer.
    • Cowen offers additional services such as portfolio reconciliation and shadow reporting; real-time P&L and risk analytics; pre-trade analytics; trade cost analysis on all executing brokers, and capital introduction. Managers can also access Cowen’s suite of institutional services, such as research, conferences, capital markets, prime brokerage, stock-loan, fully paid-for lending, and syndication.
    • Cowen provides a comprehensive commission management solution. Working with portfolio managers, our traders set and continuously monitor commission budgets to optimize the services clients need to manage their portfolio, such as research and corporate access. Additionally, through our affiliate Westminster Research Associates, we offer a MiFID II Compliant Research Payment Solution. This service also provides tools that allow managers to create budgets at the firm, fund, and strategy levels, and allocate research payments against these budgets and generate MiFID II compliant reports for internal control, regulatory and client reporting purposes.

KEY BENEFITS

    • Cowen provides a high-touch, comprehensive outsourced trading solution, or supplements an existing trading operation, depending on the client’s specific needs. We leverage an established and experienced team of traders in New York, Stamford, Boston, San Francisco, Atlanta, London, and soon to be Hong Kong, along with our existing international network of brokers. Our global reach provides greater breadth of information than a traditional in-house trading desk.
    • Our outsourced solution provides exceptional value as the client’s trading desk, while averting the cost of building and operating an in-house infrastructure. This allows managers to convert a host of fixed costs into variable ones that can be managed on a pay-as-you-go basis.
    • The outsourced trading model relieves the burden of managing people and technology, so our clients can concentrate resources on alpha-generating functions, including research, portfolio construction, and risk management.

 

AVAILABLE SERVICES

  • Global Multi Asset Class Capability
  • Traders Across US & International Offices
  • Agency-only model
  • Connected to 200+ Brokers and 25+ Custodians
  • Access to Cowen’s Institutional Platform
  • Middle- & Back-office Support
  • Shadow Reporting with Multi-Custodian Portal
  • OMS & Risk Reporting Solutions
  • MIFID II Compliant Commission Management
  • New Launch Consulting
  • Capital Introduction
  • Customizable Platform

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Insights & Commentary

Prime Services

Nov 8 2018

Outsourced Trading Should Be More Than Just Trade Execution

As outsourcing as a business concept has increasingly gained traction throughout the economy, it’s also become more widely accepted in the investment management business in recent years. In fact, institutional investors now seem quite comfortable allocating capital to investment managers who diligently employ outsourced solutions for CFO, COO and operations, compliance, information technology and cyber-security services.

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