Outsourced Trading provides investment managers a cost-effective solution for running their business, while providing direct access to liquidity and market intelligence.
With JonesTrading Outsourced you have an expert and experienced trading desk, with broad and deep market knowledge, but without the costs and infrastructure. Our traders have an average of 20 years’ experience, both in sourcing natural liquidity and order handling.
We parallel your investment intent through our execution capability. Orders are always anonymous, and we optimize to provide the opportunity for best execution. Our relationship based model is truly uncompromised as we have no principal market makers, internal investment accounts or high frequency trading. We offer multiple trading solutions based on client investment thesis, asset allocation, and equity market strategy. These are backed by a sophisticated status dashboard, JonesView, and market research, CSAs, soft dollar, and Capital Introductions.
JonesTrading Wins Best Outsourced Trading Solution at the HFM US Hedge Fund Services Awards 2021
Alan Hill, CEO of JonesTrading, said: “We are very proud being named Best Outsourced Trading Solution by HFM. We are grateful for the industry recognition of our commitment to excellence and the confidence our clients place in us. Our Outsourced Trading business is a major focus for our firm and we have built an exceptional team over the past five years. We’ve invested quite a bit in both the technology and the staff to offer our clients the highest level of service.”
We’ve got you covered. Think of the continuity assurance that JonesTrading brings: we act as your own trading desk without the associated costs and infrastructure, with a dedicated trader assigned to you. Orders are seamlessly executed, immediately (even if there are business interruptions). We have 24/6 global coverage, and have access to electronic markets and the algos that best suit your trading intent. We also provide execution services, middle office functions, stock loan, reporting, and soft dollar management.
Regional Outsourced Trading
We offer cross border trading In Europe and Asia Pacific, regardless of where funds are domiciled. This includes access to local brokers’ trading flows, market color, and research as well as access to an extensive network of block liquidity anonymously or while gaining attribution with those executing brokers. And, if needed, we can provide targeted trading in regions that are non-core to the client’s main strategy.
Full Service Outsourced Trading
We assume all the responsibility – acting, in effect, as your internal trader. This includes managing directed trading and soft dollar budgets while handling all day-to-day execution and commission management. Clients utilize the platform to access our extensive broker network to either trade externally anonymously or for attribution with the executing broker. These execution services are backed with research, desk color, corporate access events, and capital market transactions from a network of third party brokers. And the integration is seamless, crafting workflow around your existing technology infrastructure.
Enterprise Outsourced Trading
For larger clients, we not only incorporate all aspects of our Full-Service Outsourced Trading but have an array of other support services. These include full sponsorship and integration of technology (e.g. EMS, PMS, OMS) and exclusive coverage by a team of dedicated traders. Clients have the option to have a JonesTrading employee resident in your offices or JonesTrading Outsourced Trading can hire a firm’s current internal traders.
Managing Director, Global Head of Outsourced Trading/Co-Head of Prime Services
Mr. LeVeen serves as Managing Director, Global Head of Outsourced Trading/Co-Head of Prime Services. Previously, Jeff was a Managing Director with Knight Capital Group/KCG in the Institutional Sales Trading division. Jeff began his career with Citigroup, where he served as a principal trader making markets in Semiconductors for the firm’s institutional and retail clients before transitioning to Institutional Sales Trading. Jeff is responsible for building JonesTrading’s leading outsourced trading platform from the ground up, leveraging his expertise in Buyside technology, Buyside operations, Best Execution/TCA, research budgeting and other relevant areas. Jeff is frequently pursued by media and trade organizations as a thought leader in Outsourced Trading. Mr. LeVeen is licensed as a General Securities Principal, General Securities Representative, Securities Trader and a Registered Options Principal. Mr. LeVeen resides in Charleston, South Carolina with his wife Martha and four children Mackenzie, LJ, Willa, and Charlotte.
Managing Director, Head of Asia Pacific Trading
Mr. Tafaro joined the firm in 2016 as a Managing Director from Tora Trading to help spearhead the firm’s Asian shares trading business. From 2000-2013 he worked for Goldman Sachs in Asia. In 2009 he was named co-head of Japan Shares Execution Services in Tokyo and was promoted to Managing Director in 2010. Mr. Tafaro started his career in finance at Nomura Securities International in Tokyo. He graduated with honors in International Studies (East Asia) and a minor in Japanese from Trinity College in 1998. Mr. Tafaro also attended Nanzan University in Nagoya, Japan for one year of intensive language study in 1997. Mr. Tafaro has his series 7, 24, 3, and 63 industry licenses.
Head of European Outsourced Trading
Mr. Sellers serves as the Head of European Outsourced Trading at JonesTrading. Peter started his career as an Investment Banking Analyst at First Union Securities. He has held positions throughout his career in Equity Research Product Development, Index Arbitrage, Program Trading, Commodity Derivatives Trading, and Capital Markets Trading. Peter spent 6 years as a Senior Trader for Perry Capital, which was a $14bn fund at the time. He focused on Equity Long/Short and Risk Arbitrage trading during his tenure in New York. Additionally, Peter worked for Perry in their London office where he was the Head of European Trading with a focus on Long/Short Equity and European Distressed Credit. Following his time at Perry, Peter was employed at Adams Hill Partners as the Head of International Trading which was a $425mm Long-Short Equity hedge fund launch with a concentration in Basic Resources, Mining, and Energy. From 2014 to 2019 Peter was the Head of Global Equity Trading at Caxton Associates, a $4bn Global Macro Fund. Peter joined JonesTrading in 2019 to expand the international outsource efforts at the firm. He graduated from Dartmouth College in 1998 where he was a Quarterback and Pitcher for the Dartmouth Football and Baseball teams. He holds the Series 7, 57, and 63 Industry Licenses.
Questions Frequently Asked
Which asset classes do you trade?
US Equities, US Options, US Fixed Income, Futures, International Equities
What strategies do you support?
Equity Long/Short, Long Only, Quant, Macro, Arbitrage
What are the typical commission rates1?
North America: $0.005 – $0.02; EMEA: 3-7 bps; APAC: 7-12 bps
How many brokerage relationships do you maintain?
What OMS Platforms do you work with?
Flexibility to work with all OMS Platforms (i.e. Eze, Enfusion, LiquidityBook, Bloomberg, etc.)
How long does it take to set up an account?
Typically 1-2 weeks
Outsourced trading offers clear cost savings over internal hiring and improves execution quality.
Many firms are currently or planning to outsource all or part of their trading. We can even place traders at clients and we offer prime broker and cap intro consulting.
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An Outsourced Trading desk is well positioned to navigate trading decisions while emphasizing best execution.
Asset managers must understand and adhere to their own best execution policies. But Outsourced Trading provides robust advantages in planning and achieving best ex objectives.
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