CAPIS Insights

92 total posts

April Research Briefing RECAP: MPP Says 2022 Is A Tale of Two Halves  

News CAPIS Insights General

General

posted by CAPIS on 04/22/2022 at 2:05 pm
by CAPIS on 04/22/2022

Last week, we held our April research briefing, featuring guest speakers John Fagan and Brendan Walsh, co-founders of Markets Policy Partners (MPP). MPP is a Washington, D.C.-based independent advisory service that informs clients on matters at the intersection of markets and policy, and in the public sector.   Click here for a video of the research call   MPP’s presentation addressed the following topics:   Tectonic Shift by the Federal Reserve [2:57] MPP said the FOMC has moved definitively towards draining liquidity from the economy amid the current supply-driven shock in the production chain. [3:35] While the markets and growth surge in the first half of the year, expect the second half to be challenging growth-wise and will be choppy. [6:05] The Federal Reserve will “take every rate hike” the markets will allow – meaning the FOMC might tighten monetary policy even faster and more aggressively than originally forecast. [6:35] Core inflation may be hitting its peak for the year and supply-side bottlenecks will get worse – spurred in part by China’s “zero-COVID” tolerance policy. [8:10] Stagflation is the new buzzword amid slower growth expectations. [9:05] The FOMC could raise rates by more than 50bps at a time, possibly 75bps,…

Last week, we held our April research briefing, featuring guest speakers John Fagan and Brendan Walsh, co-founders of Markets Policy Partners (MPP). MPP is a Washington, D.C.-based independent advisory service that informs clients on matters at the intersection of markets and policy, and in the public sector.   Click here for a video of the research call   MPP’s presentation addressed the following topics:   Tectonic Shift by the Federal Reserve [2:57] MPP said the FOMC has moved definitively towards draining liquidity from the economy amid the current supply-driven shock in the production chain. [3:35] While the markets and growth surge in the first half of the year, expect the second half to be challenging growth-wise and will be choppy. [6:05] The Federal Reserve will “take every rate hike” the markets will allow – meaning the FOMC might tighten monetary policy even faster and more aggressively than originally forecast. [6:35] Core inflation may be hitting its peak for the year and supply-side bottlenecks will get worse – spurred in part by China’s “zero-COVID” tolerance policy. [8:10] Stagflation is the new buzzword amid slower growth expectations. [9:05] The FOMC could raise rates by more than 50bps at a time, possibly 75bps,…

CLIENT TRADING NOTICE: SEC Fee Rate Advisory for Fiscal Year 2022

CAPIS Insights

CAPIS Insights

posted by CAPIS on 04/12/2022 at 3:11 pm
by CAPIS on 04/12/2022

Please be advised that the SEC announced on Friday, April 8, that the SEC FEE Rate will increase from $5.10 per million to $22.90 per million.  The new rate will apply to eligible transactions settling on May 14th ,2022, and later. See below the official release from the Securities and Exchange Commission: FOR IMMEDIATE RELEASE 2022-60 Washington D.C., April 8, 2022 — The Securities and Exchange Commission today announced that starting on May 14, 2022, the fee rates applicable to most securities transactions will be set at $22.90 per $1 million. Consequently, each SRO will continue to pay the Commission a rate of $5.10 per million for covered sales occurring on charge dates through May 13, 2022, and a rate of $22.90 per million for covered sales occurring on charge dates on or after May 14, 2022. The substantial increase in the fee rate is primarily due to the very low fee rate of $5.10 per million for fiscal year 2021. The current fee rate represents a return to levels similar to those prior to 2021 i.e. $22.10 in 2020 and $20.70 in 2019. The fiscal year 2021 fee rate was set at this low rate because of unprecedented covered…

Please be advised that the SEC announced on Friday, April 8, that the SEC FEE Rate will increase from $5.10 per million to $22.90 per million.  The new rate will apply to eligible transactions settling on May 14th ,2022, and later. See below the official release from the Securities and Exchange Commission: FOR IMMEDIATE RELEASE 2022-60 Washington D.C., April 8, 2022 — The Securities and Exchange Commission today announced that starting on May 14, 2022, the fee rates applicable to most securities transactions will be set at $22.90 per $1 million. Consequently, each SRO will continue to pay the Commission a rate of $5.10 per million for covered sales occurring on charge dates through May 13, 2022, and a rate of $22.90 per million for covered sales occurring on charge dates on or after May 14, 2022. The substantial increase in the fee rate is primarily due to the very low fee rate of $5.10 per million for fiscal year 2021. The current fee rate represents a return to levels similar to those prior to 2021 i.e. $22.10 in 2020 and $20.70 in 2019. The fiscal year 2021 fee rate was set at this low rate because of unprecedented covered…

Q1 Market Trends – Part 2

News CAPIS Insights General

General

posted by CAPIS on 04/06/2022 at 10:13 am
by CAPIS on 04/06/2022

There is a lot to discuss when we look back at the first quarter. In the second part of our video series, we look at significant factors that impacted the US market. And we share some multi-year analyses of trade data, including commissions, trade volumes, and shares. Click here to see the first video in the series.     For reference, we used the CAPIS Ally universe for our analysis. The data represents $609.7MM in commissions, $2.2T in trades, and 41.7MM shares across more than 9.6MM trades for the period reviewed.

There is a lot to discuss when we look back at the first quarter. In the second part of our video series, we look at significant factors that impacted the US market. And we share some multi-year analyses of trade data, including commissions, trade volumes, and shares. Click here to see the first video in the series.     For reference, we used the CAPIS Ally universe for our analysis. The data represents $609.7MM in commissions, $2.2T in trades, and 41.7MM shares across more than 9.6MM trades for the period reviewed.

Highlights From the 2022 STA DC Spring Update

News CAPIS Insights General

General

posted by CAPIS on 04/04/2022 at 9:20 am
by CAPIS on 04/04/2022

At CAPIS, we’re striving to engage market debate, promote critical thinking and be objective. To that end, the Security Traders Association recently held its Virtual Washington DC Spring 2022 Update via webinar and CAPIS was in attendance. We are pleased to provide select speaker highlights from the day-long event. (Editor’s Note: CAPIS has shortened some quotes and added context when applicable.) Market Structure “The sub-penny trading has been a driver of trading activity on dark pools. Market makers and participants in dark pools can step ahead of the exchanges and trade in sub-pennies. I believe it is time to revisit this rule.” “The old diversity rule did little to define diversity, so companies had little guidance & disclosures were of little value to investors. The Nasdaq Rule on board diversity is critical b/c it spells out what is required of companies, holding firms accountable.” Representative Gregory Meeks “Not terribly valuable in fostering competition is changes to the order protection rule. The SEC should focus on addressing the costs directly, not changing the rules around to require an exchange have a certain market share in order to enjoy order protection.” “Most valuable would be changes in tick size rules.” “The commissioner…

At CAPIS, we’re striving to engage market debate, promote critical thinking and be objective. To that end, the Security Traders Association recently held its Virtual Washington DC Spring 2022 Update via webinar and CAPIS was in attendance. We are pleased to provide select speaker highlights from the day-long event. (Editor’s Note: CAPIS has shortened some quotes and added context when applicable.) Market Structure “The sub-penny trading has been a driver of trading activity on dark pools. Market makers and participants in dark pools can step ahead of the exchanges and trade in sub-pennies. I believe it is time to revisit this rule.” “The old diversity rule did little to define diversity, so companies had little guidance & disclosures were of little value to investors. The Nasdaq Rule on board diversity is critical b/c it spells out what is required of companies, holding firms accountable.” Representative Gregory Meeks “Not terribly valuable in fostering competition is changes to the order protection rule. The SEC should focus on addressing the costs directly, not changing the rules around to require an exchange have a certain market share in order to enjoy order protection.” “Most valuable would be changes in tick size rules.” “The commissioner…

CASE STUDY Part 4: Outsourced Trading for Wrap and Separately Managed Accounts (SMA)

News CAPIS Insights General

General

posted by CAPIS on 03/30/2022 at 9:07 am
by CAPIS on 03/30/2022

This article was written by Martin Coughlan, CFA, CAIA. Martin has spent over twenty years working at asset management firms globally.    Outsourced Trading for Wrap and Separately Managed Accounts (SMA) In Part 3 of our series, we discussed some of the common concerns investment managers have in terms of outsourced trading and how those concerns can be allayed. In this final part of our series, we will look at one specific challenge that managers face when considering outsourced trading – how outsourced trading can be effectively implemented for Wrap and SMAs.   An overview of Wrap and SMAs Wrap and SMA accounts continue to be a very important offering in the marketplace with combined Q3 AUM in the United States of approximately $10 plus trillion from the Money Management Institute. Both vehicles facilitate individuals that require a more customized approach and those that wish to solely own securities rather than units of a mutual fund or other fund vehicle. They can also be used to allow more effective tax management for High-Net-Worth investors. While the terms are often used interchangeably, there is a difference. With a Wrap account, a financial advisor may serve as the account’s investment manager, selecting individual…

This article was written by Martin Coughlan, CFA, CAIA. Martin has spent over twenty years working at asset management firms globally.    Outsourced Trading for Wrap and Separately Managed Accounts (SMA) In Part 3 of our series, we discussed some of the common concerns investment managers have in terms of outsourced trading and how those concerns can be allayed. In this final part of our series, we will look at one specific challenge that managers face when considering outsourced trading – how outsourced trading can be effectively implemented for Wrap and SMAs.   An overview of Wrap and SMAs Wrap and SMA accounts continue to be a very important offering in the marketplace with combined Q3 AUM in the United States of approximately $10 plus trillion from the Money Management Institute. Both vehicles facilitate individuals that require a more customized approach and those that wish to solely own securities rather than units of a mutual fund or other fund vehicle. They can also be used to allow more effective tax management for High-Net-Worth investors. While the terms are often used interchangeably, there is a difference. With a Wrap account, a financial advisor may serve as the account’s investment manager, selecting individual…

Q1 Market Trends – Part 1

News CAPIS Insights General

General

posted by CAPIS on 03/29/2022 at 10:13 am
by CAPIS on 03/29/2022

There is a lot to discuss when we look back at the first quarter. In the first part of our video series, we look at significant factors that impacted the US market. And we share some multi-year analyses of trade data, including commissions, trade volumes, and shares.   For reference, we used the CAPIS Ally universe for our analysis. The data represents $609.7MM in commissions, $2.2T in trades, and 41.7MM shares across more than 9.6MM trades for the period reviewed.

There is a lot to discuss when we look back at the first quarter. In the first part of our video series, we look at significant factors that impacted the US market. And we share some multi-year analyses of trade data, including commissions, trade volumes, and shares.   For reference, we used the CAPIS Ally universe for our analysis. The data represents $609.7MM in commissions, $2.2T in trades, and 41.7MM shares across more than 9.6MM trades for the period reviewed.

March Research Briefing RECAP: Inflation Takes Center Stage Despite Extraneous Events

News CAPIS Insights General

General

posted by CAPIS on 03/17/2022 at 4:49 pm
by CAPIS on 03/17/2022

This article was penned by CAPIS   CAPIS held its March research call, featuring Nicholas Colas and Jessica Rabe, Co-Founders of DataTrek Research. DataTrek is a New York-based independent research advisory service providing unbiased data analysis, helping investors make the investment process more profitable, robust, and efficient. Click here for a video of the research call Colas and Rabe’s presentation addressed the following topics: Russia/Ukraine Crisis Will Not Result in WWIII Colas opened with a statistic citing the VIX stands at 27 now, higher than in previous rising rate environments due to the conflict in Europe. The Federal Reserve since 1990 has never begun raising rates when the VIX was over 22. (3:37) Equities are certainly more volatile now but that is due to the confluence of rising oil prices, the Russia/Ukraine conflict, higher inflation overall and China. (5:05) We are currently in an economic environment dominated by uncertainty. (5:15) Despite the negative humanitarian effects of the current Russia/Ukraine, the stock markets don’t believe there will be a “WWW III-type” event and this crisis is not existential and can be resolved. (6:18) Europe not the U.S. Faces Real Risk of Recession Colas said that economic slowdowns could hit globally, Europe…

This article was penned by CAPIS   CAPIS held its March research call, featuring Nicholas Colas and Jessica Rabe, Co-Founders of DataTrek Research. DataTrek is a New York-based independent research advisory service providing unbiased data analysis, helping investors make the investment process more profitable, robust, and efficient. Click here for a video of the research call Colas and Rabe’s presentation addressed the following topics: Russia/Ukraine Crisis Will Not Result in WWIII Colas opened with a statistic citing the VIX stands at 27 now, higher than in previous rising rate environments due to the conflict in Europe. The Federal Reserve since 1990 has never begun raising rates when the VIX was over 22. (3:37) Equities are certainly more volatile now but that is due to the confluence of rising oil prices, the Russia/Ukraine conflict, higher inflation overall and China. (5:05) We are currently in an economic environment dominated by uncertainty. (5:15) Despite the negative humanitarian effects of the current Russia/Ukraine, the stock markets don’t believe there will be a “WWW III-type” event and this crisis is not existential and can be resolved. (6:18) Europe not the U.S. Faces Real Risk of Recession Colas said that economic slowdowns could hit globally, Europe…

CASE STUDY Part 3: Objections to Outsourcing

News CAPIS Insights General

General

posted by CAPIS on 03/15/2022 at 11:20 am
by CAPIS on 03/15/2022

This article was written by Martin Coughlan, CFA, CAIA. Martin has spent over twenty years working at asset management firms globally.    In part 2 of our series, we discussed the reasons why investment managers may wish to consider outsourced trading. In this paper, we will look at the common objections we hear from investment firms and the areas they should focus their due diligence on as they assess outsourced trading providers. Business structure conflicts of interest and execution capabilities We believe that it is imperative that investment managers investigate potential conflicts of interest fully. While there are a significant number of firms offering outsourced trading capabilities today, we believe managers should focus their due diligence on agency only firms that do not engage in proprietary trading or investment banking activities. It is critical that your outsourced partner is unconflicted in terms of flow. Attention should be paid to ensuring that there are no internally developed algorithms, ownership of any trading pools, or pledges to any pools that could introduce potential conflicts of interest. Strong consideration also needs to be given to the breath of trading venues utilized across algo suites, ECNs, ATS’, dark pools, and market makers   Best execution…

This article was written by Martin Coughlan, CFA, CAIA. Martin has spent over twenty years working at asset management firms globally.    In part 2 of our series, we discussed the reasons why investment managers may wish to consider outsourced trading. In this paper, we will look at the common objections we hear from investment firms and the areas they should focus their due diligence on as they assess outsourced trading providers. Business structure conflicts of interest and execution capabilities We believe that it is imperative that investment managers investigate potential conflicts of interest fully. While there are a significant number of firms offering outsourced trading capabilities today, we believe managers should focus their due diligence on agency only firms that do not engage in proprietary trading or investment banking activities. It is critical that your outsourced partner is unconflicted in terms of flow. Attention should be paid to ensuring that there are no internally developed algorithms, ownership of any trading pools, or pledges to any pools that could introduce potential conflicts of interest. Strong consideration also needs to be given to the breath of trading venues utilized across algo suites, ECNs, ATS’, dark pools, and market makers   Best execution…

Your Questions about Outsourced Trading, Answered by CAPIS

CAPIS Insights

CAPIS Insights

posted by CAPIS on 03/14/2022 at 10:20 am
by CAPIS on 03/14/2022

originally penned by Richey May Lately, our alternative investment team has been fielding more questions about outsourced trading. What is it? How does it work? What are the latest trends? So we went to an expert, Mark Viani, Director, Institutional Sales at CAPIS, to answer your most frequently asked questions. Here are the highlights of our conversation. What is outsourced trading and what types of funds would it most benefit? Outsourced trading can be defined in several ways. For some firms, it’s the simple outsourcing of the trading execution function to an external broker rather than employing in-house traders. To others, it may mean co-sourcing, where the asset manager relies on an outside trading desk to aid in the execution function but still maintains an in-house trading desk. Long gone are the days when only RIAs and hedge funds benefit from outsourcing their trading. Many firms find comfort in the depth, coverage and experience of their outsourced desk. And they no longer worry about desk coverage during vacations or illness, along with the sheer cost of staffing a trading desk. Is outsourced trading a better fit for funds of a certain size, type or strategy? Can you provide a real-world example?…

originally penned by Richey May Lately, our alternative investment team has been fielding more questions about outsourced trading. What is it? How does it work? What are the latest trends? So we went to an expert, Mark Viani, Director, Institutional Sales at CAPIS, to answer your most frequently asked questions. Here are the highlights of our conversation. What is outsourced trading and what types of funds would it most benefit? Outsourced trading can be defined in several ways. For some firms, it’s the simple outsourcing of the trading execution function to an external broker rather than employing in-house traders. To others, it may mean co-sourcing, where the asset manager relies on an outside trading desk to aid in the execution function but still maintains an in-house trading desk. Long gone are the days when only RIAs and hedge funds benefit from outsourcing their trading. Many firms find comfort in the depth, coverage and experience of their outsourced desk. And they no longer worry about desk coverage during vacations or illness, along with the sheer cost of staffing a trading desk. Is outsourced trading a better fit for funds of a certain size, type or strategy? Can you provide a real-world example?…

PODCAST: Foreside Financial Spotlight – CAPIS

CAPIS Insights

CAPIS Insights

posted by CAPIS on 03/11/2022 at 9:44 am
by CAPIS on 03/11/2022

CAPIS was recently featured during a Foreside Financial podcast where Mark Viani, Director, Institutional Sales (ARC Solutions) and Robert McHeffey, Institutional Sales, discussed Outsourced Trading and Wrap Trading technology, specifically our ARC solution. Please click on the embedded video to hear the conversation.    

CAPIS was recently featured during a Foreside Financial podcast where Mark Viani, Director, Institutional Sales (ARC Solutions) and Robert McHeffey, Institutional Sales, discussed Outsourced Trading and Wrap Trading technology, specifically our ARC solution. Please click on the embedded video to hear the conversation.    

“The Elephant in the Room” – Best-Ex Issues in Managed Accounts

CAPIS Insights

CAPIS Insights

posted by CAPIS on 03/07/2022 at 9:14 am
by CAPIS on 03/07/2022

penned by Chris Halverson, Senior Vice President, Sales  Despite the pandemic, the equity markets were very kind to the financial services industry.  Returns have been positive, and assets continue to flow in the right direction.  What’s gone relatively unnoticed, however, is the overall growth in “managed accounts”, specifically WRAP sponsors, custodial platforms (think Schwab, Fidelity, Pershing, etc.) and unified managed accounts (UMA).  According to the Money Management Institute, “managed account assets crossed $10 trillion for the first time during the third quarter of 2021.”  On the surface, this sounds great; but there’s an “elephant in the room” that’s been causing problems for years… best-ex issues with managed accounts. In the past, a registered investment advisor (RIA) might work with a couple of WRAP sponsors or custodial platforms, representing 10%-20% of their assets under management (AUM).  Now, that same RIA may work with multiple WRAP sponsors and custodial platforms, representing 30%-50% of their AUM.  This creates significant issues with respect to best-execution. To address various directives associated with managed accounts, investment managers often rely on a “tier system”, where trades are executed sequentially, based on an account’s respective tier.   Tier 1 – Free to Trade Accounts Clients that do not…

penned by Chris Halverson, Senior Vice President, Sales  Despite the pandemic, the equity markets were very kind to the financial services industry.  Returns have been positive, and assets continue to flow in the right direction.  What’s gone relatively unnoticed, however, is the overall growth in “managed accounts”, specifically WRAP sponsors, custodial platforms (think Schwab, Fidelity, Pershing, etc.) and unified managed accounts (UMA).  According to the Money Management Institute, “managed account assets crossed $10 trillion for the first time during the third quarter of 2021.”  On the surface, this sounds great; but there’s an “elephant in the room” that’s been causing problems for years… best-ex issues with managed accounts. In the past, a registered investment advisor (RIA) might work with a couple of WRAP sponsors or custodial platforms, representing 10%-20% of their assets under management (AUM).  Now, that same RIA may work with multiple WRAP sponsors and custodial platforms, representing 30%-50% of their AUM.  This creates significant issues with respect to best-execution. To address various directives associated with managed accounts, investment managers often rely on a “tier system”, where trades are executed sequentially, based on an account’s respective tier.   Tier 1 – Free to Trade Accounts Clients that do not…

CLIENT TRADING NOTICE – Russian American Depositary Receipts (ADRs)

CAPIS Insights

CAPIS Insights

posted by CAPIS on 03/03/2022 at 12:29 pm
by CAPIS on 03/03/2022

    Client Notice – Trading of Russian American Depositary Receipts (ADRs) Due to recent developments in the Ukraine multiple U.S. based market makers have restricted trading in certain Russian ADRs.  As a result of these trading restrictions Capital Institutional Services, Inc. may be unable to execute your buy/sell orders in these securities until the restrictions are lifted. Currently the restricted ADRs include, but may not be limited to, the following: Symbol Security Name AUCOY POLYMETAL INTL PLC ADR GZPFY GAZPROM NEFT PJSC S/ADR LUKOY PJSC LUKOIL S/ADR NILSY MMC NOR NICKEL PJSC S/ADR OAOFY PJSC TATNEFT S/ADR OGZPY PJSC GAZPROM S/ADR ROSYY PJSC ROSTELECOM S/ADR RSHYY RUSHYDRO PJSC S/ADR SBRCY SBERBANK OF RUSSIA S/ADR SGTPY SURGUTNEFTEGAS S/ADR PFD SGTZY SURGUTNEFTEGAS PJSC S/ADR   CAPIS will continue to monitor this situation.  Please contact your CAPIS representative if you have any additional questions or concerns.

    Client Notice – Trading of Russian American Depositary Receipts (ADRs) Due to recent developments in the Ukraine multiple U.S. based market makers have restricted trading in certain Russian ADRs.  As a result of these trading restrictions Capital Institutional Services, Inc. may be unable to execute your buy/sell orders in these securities until the restrictions are lifted. Currently the restricted ADRs include, but may not be limited to, the following: Symbol Security Name AUCOY POLYMETAL INTL PLC ADR GZPFY GAZPROM NEFT PJSC S/ADR LUKOY PJSC LUKOIL S/ADR NILSY MMC NOR NICKEL PJSC S/ADR OAOFY PJSC TATNEFT S/ADR OGZPY PJSC GAZPROM S/ADR ROSYY PJSC ROSTELECOM S/ADR RSHYY RUSHYDRO PJSC S/ADR SBRCY SBERBANK OF RUSSIA S/ADR SGTPY SURGUTNEFTEGAS S/ADR PFD SGTZY SURGUTNEFTEGAS PJSC S/ADR   CAPIS will continue to monitor this situation.  Please contact your CAPIS representative if you have any additional questions or concerns.

CASE STUDY Part 2: Outsourced Trading “Reasons to Outsource.”

CAPIS Insights

CAPIS Insights

posted by CAPIS on 02/25/2022 at 11:34 am
by CAPIS on 02/25/2022

This article was written by Martin Coughlan, CFA, CAIA. Martin has spent over twenty years working at asset management firms globally.    In the second part of our series on Outsourced Trading, we will look at reasons why investment firms may wish to consider outsourced trading in the current environment. Investment managers need to optimize their operations As we discussed in our first paper, the macro environment for active management means that most investment firms need to better optimize their operations and focus their expenditures on core areas of the business. We would argue that the core areas for asset managers are where alpha is generated (the investment team), and where growth and client retention is the focus (the distribution team). While some will think that outsourcing a trader may only reduce salary spend, there are other areas of potential cost savings including: Bloomberg terminals SWIFT licensing and transactions OMS licenses Market data feeds Hardware Office furniture and space Business continuity Future technology investment in trading Question for CAPIS – do you provide third party Transaction Cost Analysis to your outsourced clients; are there any other things you do for your Outsourced Trading clients that would reduce a manager’s expenses? …

This article was written by Martin Coughlan, CFA, CAIA. Martin has spent over twenty years working at asset management firms globally.    In the second part of our series on Outsourced Trading, we will look at reasons why investment firms may wish to consider outsourced trading in the current environment. Investment managers need to optimize their operations As we discussed in our first paper, the macro environment for active management means that most investment firms need to better optimize their operations and focus their expenditures on core areas of the business. We would argue that the core areas for asset managers are where alpha is generated (the investment team), and where growth and client retention is the focus (the distribution team). While some will think that outsourcing a trader may only reduce salary spend, there are other areas of potential cost savings including: Bloomberg terminals SWIFT licensing and transactions OMS licenses Market data feeds Hardware Office furniture and space Business continuity Future technology investment in trading Question for CAPIS – do you provide third party Transaction Cost Analysis to your outsourced clients; are there any other things you do for your Outsourced Trading clients that would reduce a manager’s expenses? …

CAPIS Supports Young Women’s Preparatory Network 2022 STEAM Challenge

News CAPIS Insights General

General

posted by CAPIS on 02/25/2022 at 10:56 am
by CAPIS on 02/25/2022

At CAPIS, we understand the importance of giving back. For years, participating in philanthropic events has been a part of our core values, we are proud to support organizations who specifically target improving the lives of women and children. In keeping with this tradition, CAPIS again will be making a financial contribution to the Young Women’s Preparatory Network (YWPN) and is a proud sponsor of its STEAM Challenge, an event designed to develop and teach concepts in science, technology, engineering and math through interactive activities, encouraging competition and community awareness. The 2022 YWPN STEAM Challenge will take place virtually and will be a fun-filled and educational day of team presentations of innovative STEAM ideas, friendly competition and community awareness. It will take place on Saturday, February 26, 2022, NorthPark Center, Dallas, Tx. Between 1-4 p.m. “CAPIS is a proud supporter of the Young Women’s Preparatory Network,” Ann Sebert, Chief Executive Officer at CAPIS said. “The support that YWPN provides for young women in our community is unparalleled and we are thrilled to be a part of their success. It’s all part of the CAPIS Difference – committing to great relationships in our community and not just in the financial industry.”…

At CAPIS, we understand the importance of giving back. For years, participating in philanthropic events has been a part of our core values, we are proud to support organizations who specifically target improving the lives of women and children. In keeping with this tradition, CAPIS again will be making a financial contribution to the Young Women’s Preparatory Network (YWPN) and is a proud sponsor of its STEAM Challenge, an event designed to develop and teach concepts in science, technology, engineering and math through interactive activities, encouraging competition and community awareness. The 2022 YWPN STEAM Challenge will take place virtually and will be a fun-filled and educational day of team presentations of innovative STEAM ideas, friendly competition and community awareness. It will take place on Saturday, February 26, 2022, NorthPark Center, Dallas, Tx. Between 1-4 p.m. “CAPIS is a proud supporter of the Young Women’s Preparatory Network,” Ann Sebert, Chief Executive Officer at CAPIS said. “The support that YWPN provides for young women in our community is unparalleled and we are thrilled to be a part of their success. It’s all part of the CAPIS Difference – committing to great relationships in our community and not just in the financial industry.”…

December Research Call RECAP: Equities Face Tough Road Amid Higher Volatility

CAPIS Insights

CAPIS Insights

posted by CAPIS on 02/17/2022 at 5:31 pm
by CAPIS on 02/17/2022

This article was penned by CAPIS   Last week we held our February research briefing, featuring Fairlead Strategies co-Founder Katie Stockton. Fairlead Strategies, LLC is a Connecticut-based independent advisory service providing unbiased technical analysis, helping investors manage risk and discover opportunities. Katie Stockton’s presentation addressed the following topics:   Market has Lost Upside Momentum Technical factors point to tougher year ahead; will be difficult to find value in stocks. After January turmoil, SPX points to long-term market exhaustion. FAANG mega-caps have entered a trading range and are showing downside leadership. MACD says market is not oversold just yet and potential for more corrective price action exists. Market Dynamic Resembles 2018 Experience Like in 2018, the market has re-entered a period of higher volatility with the VIX approaching the 50 level – right now holding around 40. Indicators point to weakened breath and created a challenging environment for stock trading. Hedging is advised with inverse ETFs and other esoteric instruments. Growth stocks are exhibiting downside leadership and point to an underweight recommendation. Value stocks will exhibit better performance moving ahead. Sectors to watch are Consumer Staples, Energy and Financials; all have broken to the upside. S. equities, while difficult to trade…

This article was penned by CAPIS   Last week we held our February research briefing, featuring Fairlead Strategies co-Founder Katie Stockton. Fairlead Strategies, LLC is a Connecticut-based independent advisory service providing unbiased technical analysis, helping investors manage risk and discover opportunities. Katie Stockton’s presentation addressed the following topics:   Market has Lost Upside Momentum Technical factors point to tougher year ahead; will be difficult to find value in stocks. After January turmoil, SPX points to long-term market exhaustion. FAANG mega-caps have entered a trading range and are showing downside leadership. MACD says market is not oversold just yet and potential for more corrective price action exists. Market Dynamic Resembles 2018 Experience Like in 2018, the market has re-entered a period of higher volatility with the VIX approaching the 50 level – right now holding around 40. Indicators point to weakened breath and created a challenging environment for stock trading. Hedging is advised with inverse ETFs and other esoteric instruments. Growth stocks are exhibiting downside leadership and point to an underweight recommendation. Value stocks will exhibit better performance moving ahead. Sectors to watch are Consumer Staples, Energy and Financials; all have broken to the upside. S. equities, while difficult to trade…

CASE STUDY Part 1: Outsourced Trading “Why Now? And Why One Size Does Not Fit All.”

CAPIS Insights

CAPIS Insights

posted by CAPIS on 02/02/2022 at 8:25 am
by CAPIS on 02/02/2022

This article was written by Martin Coughlan, CFA, CAIA. Martin has spent over twenty years working at asset management firms globally.    The investment management industry has benefited from a period of above average returns for over a decade. Period S&P 500 (Annualized Returns through 12/31/21) 3 Years 26.07% 5 Years 18.47% 7 Years 14.93% 10 Years 16.55%   This has counteracted the impact of negative net asset flows for many active managers. With central bank action, inflation and the broader impacts of the pandemic dominating the headlines from a macro perspective, most market commentators view more volatility and lower returns as the most probable scenario we will face in the coming years. In such an environment, most investment managers will need to analyze their business even more closely and ensure they are operating at maximum efficiency levels. While the concept of outsourcing functions is not new within the industry, historically the idea of outsourcing trading is something that managers have viewed as suitable for start-ups, and not for established firms. This view is now being challenged as there are examples of small, mid-sized and larger managers (up to $50bn) that have successfully transitioned to an outsourced trading model in…

This article was written by Martin Coughlan, CFA, CAIA. Martin has spent over twenty years working at asset management firms globally.    The investment management industry has benefited from a period of above average returns for over a decade. Period S&P 500 (Annualized Returns through 12/31/21) 3 Years 26.07% 5 Years 18.47% 7 Years 14.93% 10 Years 16.55%   This has counteracted the impact of negative net asset flows for many active managers. With central bank action, inflation and the broader impacts of the pandemic dominating the headlines from a macro perspective, most market commentators view more volatility and lower returns as the most probable scenario we will face in the coming years. In such an environment, most investment managers will need to analyze their business even more closely and ensure they are operating at maximum efficiency levels. While the concept of outsourcing functions is not new within the industry, historically the idea of outsourcing trading is something that managers have viewed as suitable for start-ups, and not for established firms. This view is now being challenged as there are examples of small, mid-sized and larger managers (up to $50bn) that have successfully transitioned to an outsourced trading model in…

Employee Spotlight – Eric Burt, Vice President, Outsourced Trading

CAPIS Insights

CAPIS Insights

posted by CAPIS on 01/31/2022 at 1:27 pm
by CAPIS on 01/31/2022

At CAPIS, we put relationships first. We think of our team as a family, which is why it is important for us to not only get to know each member but also shine a spotlight on them. We spoke with Eric Burt, Vice President, Outsourced Trading, who joined CAPIS in 2021. Take a look at our conversation below to learn about why he chose CAPIS after spending time on the buy-side as a trader with Fiera Capital and Ell Capital Management. He discusses some of the biggest challenges and successes he experienced during his career and the pandemic. [Note: This conversation has been edited for length and clarity. How did you get involved in trading and CAPIS? I broke into the business on the operations team at Glickenhaus and Company [a value manager in NYC].  My goal from day one was to move over to the trading desk as I felt that was where the action was, and I wanted desperately to obtain a ticket to the show. I worked towards my licenses and transitioned to the desk, ultimately earning the honor of trading for Seth Glickenhaus himself. I then transitioned to EII Capital Management. EII was a REIT firm that…

At CAPIS, we put relationships first. We think of our team as a family, which is why it is important for us to not only get to know each member but also shine a spotlight on them. We spoke with Eric Burt, Vice President, Outsourced Trading, who joined CAPIS in 2021. Take a look at our conversation below to learn about why he chose CAPIS after spending time on the buy-side as a trader with Fiera Capital and Ell Capital Management. He discusses some of the biggest challenges and successes he experienced during his career and the pandemic. [Note: This conversation has been edited for length and clarity. How did you get involved in trading and CAPIS? I broke into the business on the operations team at Glickenhaus and Company [a value manager in NYC].  My goal from day one was to move over to the trading desk as I felt that was where the action was, and I wanted desperately to obtain a ticket to the show. I worked towards my licenses and transitioned to the desk, ultimately earning the honor of trading for Seth Glickenhaus himself. I then transitioned to EII Capital Management. EII was a REIT firm that…

January Research Briefing RECAP: MPP Says FOMC Hawks Rule Roost  

CAPIS Insights

CAPIS Insights

posted by CAPIS on 01/25/2022 at 8:24 am
by CAPIS on 01/25/2022

Last week, we held our January research briefing, featuring special guest speakers John Fagan and Brendan Walsh, co-founders of Markets Policy Partners (MPP). MPP is a Washington, D.C.-based independent advisory service that informs clients on matters at the intersection of markets and policy, and in the public sector. Click here for a video of the research call   MPP’s presentation addressed the following topics: Federal Reserve Firmly Hawkish [3:08] MPP said the hawkish members of the Federal Open Market Committee are overly committed to fighting inflation. Fear of future supply shocks and rising consumer prices linger as concerns about the impact of Omicron remain. [3:20] Interest rate hikes are imminent, with discussions ranging from four to six hikes. The market, MPP says, is “way too hawkish” at the moment, and the March meeting and its subsequent policy statement bear close scrutiny. [6:25] Investors should not “fade the Fed” just yet and wait until the March policy meeting to make a call. [7:10] Energy as a Weapon [8:54]            Geopolitical risk remains at very high levels with there being tremendous uncertainty regarding oil-producing countries – like Nigeria, Khazakstan, and Russia. The first half of the year will see countries use oil as…

Last week, we held our January research briefing, featuring special guest speakers John Fagan and Brendan Walsh, co-founders of Markets Policy Partners (MPP). MPP is a Washington, D.C.-based independent advisory service that informs clients on matters at the intersection of markets and policy, and in the public sector. Click here for a video of the research call   MPP’s presentation addressed the following topics: Federal Reserve Firmly Hawkish [3:08] MPP said the hawkish members of the Federal Open Market Committee are overly committed to fighting inflation. Fear of future supply shocks and rising consumer prices linger as concerns about the impact of Omicron remain. [3:20] Interest rate hikes are imminent, with discussions ranging from four to six hikes. The market, MPP says, is “way too hawkish” at the moment, and the March meeting and its subsequent policy statement bear close scrutiny. [6:25] Investors should not “fade the Fed” just yet and wait until the March policy meeting to make a call. [7:10] Energy as a Weapon [8:54]            Geopolitical risk remains at very high levels with there being tremendous uncertainty regarding oil-producing countries – like Nigeria, Khazakstan, and Russia. The first half of the year will see countries use oil as…

ADVISORY NOTICE: HKEX Announces Change in FRC Transaction Fees Effective Jan 1, 2022

News CAPIS Insights General

General

posted by CAPIS on 12/24/2021 at 11:05 am
by CAPIS on 12/24/2021

Please see Trading Notice Below from the Hong Kong Stock Exchange Contact our trading desk for further information on the proper booking of stamp duties, taxes, and fees in international stocks at 866.349.6216 or intl@capis.com Subject: FRC Transaction Levy of .00015% for a new combined rate of .13785%. General The following fees apply to each security transaction1: Brokerage2 Effective 1 April 2003, the brokerage of security transactions becomes freely negotiable between brokers and their clients. SFC Transaction Levy Effective 1 November 2014, a SFC Transaction Levy of 0.0027% (rounded to the nearest cent) is charged per side of the consideration of a transaction, and the amount is collected for the SFC. There is no SFC Transaction Levy on Securities Market Maker (SMM) transactions. To simplify operations with a unified basis for fee calculation for transactions in non-Hong Kong dollar currencies, the Exchange will adopt the same exchange rates as for stamp duty calculation purpose for calculating SFC Transaction Levy if applicable. Investor Compensation Levy Effective 19 December 2005, the payment of Investor Compensation Levy (i.e. 0.002% per side of the consideration of a transaction, rounded to the nearest cent) has been suspended by the SFC. To simplify operations with a…

Please see Trading Notice Below from the Hong Kong Stock Exchange Contact our trading desk for further information on the proper booking of stamp duties, taxes, and fees in international stocks at 866.349.6216 or intl@capis.com Subject: FRC Transaction Levy of .00015% for a new combined rate of .13785%. General The following fees apply to each security transaction1: Brokerage2 Effective 1 April 2003, the brokerage of security transactions becomes freely negotiable between brokers and their clients. SFC Transaction Levy Effective 1 November 2014, a SFC Transaction Levy of 0.0027% (rounded to the nearest cent) is charged per side of the consideration of a transaction, and the amount is collected for the SFC. There is no SFC Transaction Levy on Securities Market Maker (SMM) transactions. To simplify operations with a unified basis for fee calculation for transactions in non-Hong Kong dollar currencies, the Exchange will adopt the same exchange rates as for stamp duty calculation purpose for calculating SFC Transaction Levy if applicable. Investor Compensation Levy Effective 19 December 2005, the payment of Investor Compensation Levy (i.e. 0.002% per side of the consideration of a transaction, rounded to the nearest cent) has been suspended by the SFC. To simplify operations with a…

December Research Call RECAP: Long Term Technicals Says Market is Overbought, Expect Defensive Rotation

CAPIS Insights

CAPIS Insights

posted by CAPIS on 12/20/2021 at 11:12 am
by CAPIS on 12/20/2021

  Last week we held our December research call, featuring Fairlead Strategies Co-Founder Katie Stockton. Fairlead Strategies, LLC is a Connecticut-based independent advisory service providing unbiased technical analysis, helping investors manage risk and discover opportunities.     Katie Stockton’s presentation addressed the following topics:   SPX is in Final Resistance after Positive FOMC Reaction:  Long-term momentum remains positive since 2020, but expect resistance according to MACD indicators. (4:55) Despite some improvement in short-term gauges, a January correction could be coming. (6:00) The market may be moving out of a relatively low-volatility cycle during first quarter 2022. (6:29) Large-cap growth has been a source of outperformance compared to a small-cap slump. (6:44) Market Appears Exhausted While the “Santa Claus” rally is in play, stocks appear “tired” and are overbought, according to DeMark Stockton is waiting until January to hedge and reduce exposures ahead of expected Q1 volatility. (7:34) Expect further corrective price action in January. (8:00) The VIX is stuck in a 20-28 range, but a move through 28 would indicate a volatility breakout and heightened risk. (9:35) Market breadth has contracted. (10:41)   Sector Rotation Afoot Sector rotation has indicated a shift from technology & discretionary stocks to defensive securities –…

  Last week we held our December research call, featuring Fairlead Strategies Co-Founder Katie Stockton. Fairlead Strategies, LLC is a Connecticut-based independent advisory service providing unbiased technical analysis, helping investors manage risk and discover opportunities.     Katie Stockton’s presentation addressed the following topics:   SPX is in Final Resistance after Positive FOMC Reaction:  Long-term momentum remains positive since 2020, but expect resistance according to MACD indicators. (4:55) Despite some improvement in short-term gauges, a January correction could be coming. (6:00) The market may be moving out of a relatively low-volatility cycle during first quarter 2022. (6:29) Large-cap growth has been a source of outperformance compared to a small-cap slump. (6:44) Market Appears Exhausted While the “Santa Claus” rally is in play, stocks appear “tired” and are overbought, according to DeMark Stockton is waiting until January to hedge and reduce exposures ahead of expected Q1 volatility. (7:34) Expect further corrective price action in January. (8:00) The VIX is stuck in a 20-28 range, but a move through 28 would indicate a volatility breakout and heightened risk. (9:35) Market breadth has contracted. (10:41)   Sector Rotation Afoot Sector rotation has indicated a shift from technology & discretionary stocks to defensive securities –…

Subscribe to Stay Informed

Stay informed by subscribing to information that matters to you. We'll email you when we post new content you want to see.