LiquidityBook, a Software-as-a-Service (SaaS)-based provider of buy- and sell-side trading solutions, today announced that LBX Outsourced Trader, an advanced POEMS (portfolio, order and execution management system) with fully integrated FIX connectivity, has been selected by Dalzell Trading.
Dalzell Trading is an outsourced trading firm launched in 2018 with trading desks in Boston and Philadelphia. The firm is led by David Dalzell, who previously served as Head of BlackRock’s Boston-based equity and options Trading Desk and Associate Head of Equity Trading Americas. The firm provides US equity and options trading to emerging and established hedge funds and investment managers, reducing their trading desk’s costs and empowering managers to focus on portfolio management.
According to Dalzell, the firm selected LiquidityBook’s web-based platform for its flexibility and ease of management.
Over the course of my career, both at BlackRock and later while running my own consulting firm, I’ve led or been a part of dozens of OMS reviews. LiquidityBook’s platform is one of the best I’ve come across, with its web-based model providing significant cost, management and accessibility advantages. In addition, LiquidityBook’s ability to seamlessly conform to our clients’ workflows – EMS/OMS integration, regulatory and clearing firm reporting needs, et cetera – is a huge benefit for a firm like ours that lacks massive in-house IT resources,” said Dalzell.
Sean Sullivan, Chief Revenue Officer at LiquidityBook
Dave is one of the most respected buy side traders in the business; to have the LiquidityBook platform selected by him is a major feather in our cap,” added Sean Sullivan, LiquidityBook’s Chief Revenue Officer. “Dave and his team have spent their careers working with some of the biggest names in the industry to develop and implement best execution policies and procedures. The ability for managers to tap their expertise on an outsourced basis should be invaluable, as alpha preservation by the trading desk is more vital than ever.
Brad Bailey, Research Director with Celent’s Capital Markets division, notes that outsourced trading firms have become far more prominent over the last several years, necessitating unique technology solutions that web-based platforms are particularly well-suited for.
The buy side is operating in an ultra-competitive environment, with regulatory demands and operational pressures increasing. As we have seen more and more of the back and middle office outsourced, we are seeing demand for similar services in the front office. This allows firms to focus on their core expertise and partner on everything else.
He continued:
For a variety of manager types, outsourced trading firms allow them to leverage senior trading resources at a much lower cost than hiring in-house. That has led to a significant growth of the outsourced trading sector, but until recently the technology solutions available to these firms – who share elements of both a buy- and sell-side trading desk – were lacking. That gap is narrowing, with web-based solutions being especially appealing given the benefits they provide in terms of cost, management and security.
Like all LiquidityBook’s trading solutions, LBX Outsourced Trader is built on a single source code and not an amalgamation of various acquired components. It offers:
- Global, multi-asset trading capabilities providing advanced OMS functionality – including Order and Ticket Staging, Auto Marking, Position Uploads and Stock Locate – all tailored to users’ specific workflow needs.
- Flexible order entry allowing email, text or IM orders to be seamlessly converted to FIX, ready for execution on any venue or by any counterparty.
- A full suite of risk and reporting tools, enabling users to meet all client- and regulatory compliance mandates.
- Integration with all major vendors, primes, custodians and executing brokers, providing a seamless flow of order information throughout the trade lifecycle.
- Fully SaaS-based model providing simple and cost-effective deployment and management, as well as the ability to trade anywhere with hot failover and backup capabilities.
- Fully managed FIX connectivity services – supporting all versions of FIX – for accessing all counterparties across 80 markets globally.