Working Out the Pre-Trade Kinks at Franklin Templeton
Traders Magazine, September 2005
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.
All TradersMagazine.com articles are archived after 7 days. REGISTER NOW for unlimited access to all recently archived articles, as well as thousands of searchable stories. Registered Members also gain access to exclusive industry white paper downloads, web seminars, online technology directory, the iPad App, and conference discounts. Qualified members may also choose to receive our free monthly magazine and any of our e-newsletters covering the latest breaking news, opinions from industry leaders, developing trends and trading strategies.