| Daiwa Securities America,
a U.S. rendition of its Japan-based parent, prefers
to model its business on Switzerland's ideology rather
than that of either the United States or Japan.
That is, the firm has chosen a decidedly neutral course
in its pursuit of direct-market-access technology by
allowing its buy-side clients to choose providers. Rather
than purchase or partner exclusively with one DMA vendor,
Daiwa Securities America works with many, allowing clients
to select not only a DMA vendor of choice for a particular
trade, but also route that order to any broker they
choose.
In offering a buffet-style selection of DMA vendors,
Daiwa also can extend to clients the panoply of algorithms
those vendors have devised. "We were finding that,
increasingly, we need to be in the algorithm market
and provide clients with a good variety," says
Michael Mollemans, head of electronic execution sales
at the firm. "As opposed to making our own system
up like some other brokers, we decided to partner with
some of the most well-known and respected algorithm
companies so we can offer clients flexibility and options."
Mollemans says that this approach meshes well with
the desire of most buy-side clients to split up orders
- sending portions to different brokers using different
algorithms. To date, Daiwa Securities America works
with DMA vendors Aegis Software, Miletus Trading, Algorithm
Trading Solutions, InfoReach and TradingScreen - all
based in New York.
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