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Working Out the Pre-Trade Kinks at Franklin Templeton

Traders Magazine, September 2005

Michael Scotti

For money managers, trading does not occur in a vacuum. It's part of the larger investment process, according to Bill Stephenson, director of trading at Franklin Templeton Investments, which manages $250 billion in equities. The firm measures the cost of a trade over the life of the order, starting before the trade even occurs, he said. It's important to have an understanding of what a stock will cost to trade before entering the market, Stephenson explained. That pre-trade analysis could help in choosing the appropriate venue or broker, one that might have the least price impact, he added. And in a low-return investing environment with low market volatility, any boost to performance can be meaningful.

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