CAPIS Insights

35 total posts

CAPIS Outsourced Trading Desk and CAPIS ARC Combine Forces

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CAPIS Insights

posted by CAPIS on 01/13/2021 at 11:00 am
by CAPIS on 01/13/2021

Penned by CAPIS   CAPIS recently incorporated its powerful Allocation, Reconciliation, and Clearing (ARC) post-trade wrap allocation platform into the offering of its outsourced trading desk. Now, RIA’s managing institutional, wrap, and custodial platform assets can efficiently aggregate and equitably trade these orders as a block. Do you aggregate your institutional and wrap/custodial orders? Or is rotation your default process? With the increased interest in outsourced trading as a solution for RIA’s, many potential suitors have been searching for an architecture to execute like orders across multiple platforms. These aggregated orders receive the same net price, all while employing the expertise of our outsourced trading desk. Commission wallet, research management, DVP settlement, step-out matching, email notifications, and full disclosure reports are combined into one consolidated package. RIA’s can now confidently outsource all or part of their trading executions to one centralized experienced trading desk, gaining the benefit of our years executing, servicing, and settling institutional, wrap, and custodial platform trade-aways. That’s the CAPIS Difference. For outsourced trading inquiries contact Chris Hurley at 214.978.4777 or churley@capis.com. For ARC inquiries contact Mark Viani at 214.922.3236 or mviani@capis.com.  For more updates and insight from our team, follow us on Twitter (@capisinc) and LinkedIn.

Penned by CAPIS   CAPIS recently incorporated its powerful Allocation, Reconciliation, and Clearing (ARC) post-trade wrap allocation platform into the offering of its outsourced trading desk. Now, RIA’s managing institutional, wrap, and custodial platform assets can efficiently aggregate and equitably trade these orders as a block. Do you aggregate your institutional and wrap/custodial orders? Or is rotation your default process? With the increased interest in outsourced trading as a solution for RIA’s, many potential suitors have been searching for an architecture to execute like orders across multiple platforms. These aggregated orders receive the same net price, all while employing the expertise of our outsourced trading desk. Commission wallet, research management, DVP settlement, step-out matching, email notifications, and full disclosure reports are combined into one consolidated package. RIA’s can now confidently outsource all or part of their trading executions to one centralized experienced trading desk, gaining the benefit of our years executing, servicing, and settling institutional, wrap, and custodial platform trade-aways. That’s the CAPIS Difference. For outsourced trading inquiries contact Chris Hurley at 214.978.4777 or churley@capis.com. For ARC inquiries contact Mark Viani at 214.922.3236 or mviani@capis.com.  For more updates and insight from our team, follow us on Twitter (@capisinc) and LinkedIn.

CAPIS CEO Ann Sebert Elected as FINRA Representative for District 6

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posted by CAPIS on 12/17/2020 at 10:19 am
by CAPIS on 12/17/2020

This item was penned by Ann Sebert, CEO   This month I was elected FINRA’s Representative Candidate for District 6, headquartered in Dallas. It’s been a winding road to get to this point, where I will have the responsibility of advising FINRA on industry trends and relaying relevant regulatory developments to District 6’s members. The first direct experiences I had with FINRA were 15 years ago when I began supervising CAPIS’ accounting as the firm’s controller. I did not think that come 2021 I would be in a position to advocate for the right regulatory frameworks for markets and give voice to issues impacting CAPIS. I just thought there’d be more examinations. (And on that front, I was right.) My time with FINRA will begin in January and I already know of a few things that will occupy my time. The Consolidated Audit Trail is in the midst of complex implementation and debugging. A new administration can, and inevitably does, revisit hotly debated proposals. Rule 606 is not without its issues. European regulators are examining the impact of MiFID II’s research provisions, a topic that impacts the American operations of global asset managers and the whole of commission management, a key…

This item was penned by Ann Sebert, CEO   This month I was elected FINRA’s Representative Candidate for District 6, headquartered in Dallas. It’s been a winding road to get to this point, where I will have the responsibility of advising FINRA on industry trends and relaying relevant regulatory developments to District 6’s members. The first direct experiences I had with FINRA were 15 years ago when I began supervising CAPIS’ accounting as the firm’s controller. I did not think that come 2021 I would be in a position to advocate for the right regulatory frameworks for markets and give voice to issues impacting CAPIS. I just thought there’d be more examinations. (And on that front, I was right.) My time with FINRA will begin in January and I already know of a few things that will occupy my time. The Consolidated Audit Trail is in the midst of complex implementation and debugging. A new administration can, and inevitably does, revisit hotly debated proposals. Rule 606 is not without its issues. European regulators are examining the impact of MiFID II’s research provisions, a topic that impacts the American operations of global asset managers and the whole of commission management, a key…

From Our Family to Yours: CAPIS Holiday Recipe Book

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posted by CAPIS on 12/11/2020 at 12:20 pm
by CAPIS on 12/11/2020

At CAPIS, we pride ourselves on being a family both inside and outside of the office. We wanted to bring our team together, though we are apart this holiday season, so we collected favorite recipes and put together a CAPIS Family Recipe Book to share with each other, our clients, friends, and family, since food brings people together – especially here in Texas. Within this e-book you’ll find some favorite recipes from almost every family member here at CAPIS. You’ll see a variety of dishes from appetizers to casseroles, southern side dishes, and tasty desserts like my family’s Sweet Noodle Kugel (page 64) and our COO Dave Choate’s Aunt Huldah’s Chocolate Sheet Cake (page 9). Dive into our recipe book to get some inspiration for upcoming holiday meals, hearty comfort food classics, or ideas for dinner this week. Don’t forget to follow us on Twitter and LinkedIn to see featured recipes and learn more about #TheCAPISDifference. Have a happy, healthy (and tasty) holiday season, Ann Sebert, CEO  

At CAPIS, we pride ourselves on being a family both inside and outside of the office. We wanted to bring our team together, though we are apart this holiday season, so we collected favorite recipes and put together a CAPIS Family Recipe Book to share with each other, our clients, friends, and family, since food brings people together – especially here in Texas. Within this e-book you’ll find some favorite recipes from almost every family member here at CAPIS. You’ll see a variety of dishes from appetizers to casseroles, southern side dishes, and tasty desserts like my family’s Sweet Noodle Kugel (page 64) and our COO Dave Choate’s Aunt Huldah’s Chocolate Sheet Cake (page 9). Dive into our recipe book to get some inspiration for upcoming holiday meals, hearty comfort food classics, or ideas for dinner this week. Don’t forget to follow us on Twitter and LinkedIn to see featured recipes and learn more about #TheCAPISDifference. Have a happy, healthy (and tasty) holiday season, Ann Sebert, CEO  

Market Indicators: Fairlead Strategies’ Katie Stockton on the Markets

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CAPIS Insights

posted by CAPIS on 12/07/2020 at 10:49 am
by CAPIS on 12/07/2020

Penned by CAPIS Staff What assets are market drivers? What factors are outperforming? What correlations should be watched? With all that is happening in global markets during a year-long pandemic, guiding hands that can cut through the noise are beneficial, if not essential, context providers. Shortly prior to the Thanksgiving holiday, CAPIS hosted the second of its new research call series which featured Katie Stockton, founder and managing partner of Fairlead Strategies, who provided such a viewpoint, ensuring asset owners and managers don’t miss the forest for the trees. The following are some of the high-level takeaways from Stockton’s presentation: A Momentum Game As the market saying goes, “The trend is your friend.” And right now the trend remains bullish according to Stockton. While the market might benefit from a period of consolidation — a brief breather before resuming a bullish charge — and will exhibit some chop, the up-and-to-the-right dynamic remains entrenched. Tech Gets Friends As has been well documented, tech and consumer discretionary sectors have been contributing the majority of the horsepower driving this post-March rally. That will likely not be the case as we move along — other sectors will contribute as well (e.g. the recent performance…

Penned by CAPIS Staff What assets are market drivers? What factors are outperforming? What correlations should be watched? With all that is happening in global markets during a year-long pandemic, guiding hands that can cut through the noise are beneficial, if not essential, context providers. Shortly prior to the Thanksgiving holiday, CAPIS hosted the second of its new research call series which featured Katie Stockton, founder and managing partner of Fairlead Strategies, who provided such a viewpoint, ensuring asset owners and managers don’t miss the forest for the trees. The following are some of the high-level takeaways from Stockton’s presentation: A Momentum Game As the market saying goes, “The trend is your friend.” And right now the trend remains bullish according to Stockton. While the market might benefit from a period of consolidation — a brief breather before resuming a bullish charge — and will exhibit some chop, the up-and-to-the-right dynamic remains entrenched. Tech Gets Friends As has been well documented, tech and consumer discretionary sectors have been contributing the majority of the horsepower driving this post-March rally. That will likely not be the case as we move along — other sectors will contribute as well (e.g. the recent performance…

Employee Spotlight: Bryan Gibbs

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CAPIS Insights

posted by CAPIS on 12/03/2020 at 10:46 am
by CAPIS on 12/03/2020

At CAPIS, we put relationships first. We think of our team as a family, which is why it is important for us to get to know each member and shine a spotlight on them. We sat down with Bryan Gibbs to discuss his formative experiences and influences. Bryan began his career at CAPIS as an intern in 2002 and is now SVP, manager of transition management.  What was your first exposure to markets?   My first exposure was when my dad bought stock for me in a PaineWebber account when I was a teenager. Other than that, I didn’t pay much attention to the markets until I took more courses in economics when I was in college. Even then, I was on track to do something with my biology degree, so working in financial services was not on the radar. Tell us more about your biology degree. Do you think your background in science has had an impact on how you approach trading? I have always viewed myself as a jack-of-all-trades. I had a biology major with minors in economics and math, and was a class or two shy of a minor in chemistry, I believe. Transition management really requires you…

At CAPIS, we put relationships first. We think of our team as a family, which is why it is important for us to get to know each member and shine a spotlight on them. We sat down with Bryan Gibbs to discuss his formative experiences and influences. Bryan began his career at CAPIS as an intern in 2002 and is now SVP, manager of transition management.  What was your first exposure to markets?   My first exposure was when my dad bought stock for me in a PaineWebber account when I was a teenager. Other than that, I didn’t pay much attention to the markets until I took more courses in economics when I was in college. Even then, I was on track to do something with my biology degree, so working in financial services was not on the radar. Tell us more about your biology degree. Do you think your background in science has had an impact on how you approach trading? I have always viewed myself as a jack-of-all-trades. I had a biology major with minors in economics and math, and was a class or two shy of a minor in chemistry, I believe. Transition management really requires you…

The Importance of Giving Back at CAPIS

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CAPIS Insights

posted by CAPIS on 12/01/2020 at 12:13 pm
by CAPIS on 12/01/2020

At CAPIS, we’re a family. It is impossible to not form these sorts of bonds over years and years of working alongside the same talented, good-hearted people.  We often talk about our experience in markets, the decades of trials and successes shared by the traders on our desk. But the impact of that on our culture, how it forms us into a family, is the priceless part. As we pass a Thanksgiving and enter into a holiday season where we couldn’t and can’t be, to the same extent as usual, with our families, this period of reflection and giving of thanks is all the more intense and necessary.  Because of the shared impact on our communities — our industry, our families — due to a universal need to address and deal with COVID-19, I hope that those of us with the wherewithal can harness that heightened awareness and empathy on a day like today, Giving Tuesday, to lend a digital helping hand. COVID-19 has made good situations bad, and bad situations worse — so many are in need.  The CAPIS family would normally be out there, involved hands-on in philanthropic activity, a literal impossibility in 2020. Typically, our staff is…

At CAPIS, we’re a family. It is impossible to not form these sorts of bonds over years and years of working alongside the same talented, good-hearted people.  We often talk about our experience in markets, the decades of trials and successes shared by the traders on our desk. But the impact of that on our culture, how it forms us into a family, is the priceless part. As we pass a Thanksgiving and enter into a holiday season where we couldn’t and can’t be, to the same extent as usual, with our families, this period of reflection and giving of thanks is all the more intense and necessary.  Because of the shared impact on our communities — our industry, our families — due to a universal need to address and deal with COVID-19, I hope that those of us with the wherewithal can harness that heightened awareness and empathy on a day like today, Giving Tuesday, to lend a digital helping hand. COVID-19 has made good situations bad, and bad situations worse — so many are in need.  The CAPIS family would normally be out there, involved hands-on in philanthropic activity, a literal impossibility in 2020. Typically, our staff is…

CAPIS Hires Ben Jenkins as Director, Transition Management

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posted by CAPIS on 11/04/2020 at 9:44 am
by CAPIS on 11/04/2020

November 4, 2020 (DALLAS, TX) – Capital Institutional Services (CAPIS), a Dallas-based institutional broker-dealer, today announced Ben Jenkins rejoined the firm as a director in the firm’s transition management group. Jenkins comes to CAPIS with 18 years of experience in financial services with a background in trading, operations and project management. Previously, Jenkins was global head of transition management at Northern Trust where he expanded the reach of the product to both EMEA and APAC regions and grew the business to $100 billion in annual transitions. Before Northern Trust, Jenkins spent four years early in his career with CAPIS. “My original time with CAPIS provided me with a wide range of experiences and allowed me to grow my career beyond my wildest expectations,” Jenkins said. “To come back to my roots after nearly 15 years and help CAPIS in this latest chapter of the firm’s development is an opportunity few get and one I could not pass up.” Jenkins first joined CAPIS in 2002 as a research assistant and then joined the transition management team as a vice president in 2004. “We are thrilled to have Ben returning to CAPIS,” said CAPIS COO David Choate. “His return demonstrates our commitment…

November 4, 2020 (DALLAS, TX) – Capital Institutional Services (CAPIS), a Dallas-based institutional broker-dealer, today announced Ben Jenkins rejoined the firm as a director in the firm’s transition management group. Jenkins comes to CAPIS with 18 years of experience in financial services with a background in trading, operations and project management. Previously, Jenkins was global head of transition management at Northern Trust where he expanded the reach of the product to both EMEA and APAC regions and grew the business to $100 billion in annual transitions. Before Northern Trust, Jenkins spent four years early in his career with CAPIS. “My original time with CAPIS provided me with a wide range of experiences and allowed me to grow my career beyond my wildest expectations,” Jenkins said. “To come back to my roots after nearly 15 years and help CAPIS in this latest chapter of the firm’s development is an opportunity few get and one I could not pass up.” Jenkins first joined CAPIS in 2002 as a research assistant and then joined the transition management team as a vice president in 2004. “We are thrilled to have Ben returning to CAPIS,” said CAPIS COO David Choate. “His return demonstrates our commitment…

CAPIS/DataTrek Research Call Recap: The Election is Not a Binary Event

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posted by CAPIS on 11/02/2020 at 12:51 pm
by CAPIS on 11/02/2020

Penned  by CAPIS Staff   Tuesday’s U.S. presidential election has dominated market narratives and headlines for the past few months — in tandem with those related to the resurgence of COVID-19. But the overall national elections i n sum do not represent a binary outcome. There are time (delayed vs. immediate results) and party (what makeup of Congress with what President) variables to contend with. To help better inform our clients of the potential ramifications of the election, CAPIS hosted a research call with DataTrek Research’s Co-Founder Nick Colas, with added market color from our own Forrest Hopper. Colas ran market return numbers from post-WWII to the present and found that a common assumption i s a fallacy: markets generally do not respond well to a single party having control of the presidency and both chambers of Congress. It was a myth that was started and perpetuated because of early ‘ 80s market returns under President Reagan. Instead, having a split legislature and some gridlock has historically been the most supportive of bullish environments. When i t comes to unemployment, DataTrek sees a likelihood that unemployment will remain around current levels of 7% – 8%. Entering 2020, some 20% of…

Penned  by CAPIS Staff   Tuesday’s U.S. presidential election has dominated market narratives and headlines for the past few months — in tandem with those related to the resurgence of COVID-19. But the overall national elections i n sum do not represent a binary outcome. There are time (delayed vs. immediate results) and party (what makeup of Congress with what President) variables to contend with. To help better inform our clients of the potential ramifications of the election, CAPIS hosted a research call with DataTrek Research’s Co-Founder Nick Colas, with added market color from our own Forrest Hopper. Colas ran market return numbers from post-WWII to the present and found that a common assumption i s a fallacy: markets generally do not respond well to a single party having control of the presidency and both chambers of Congress. It was a myth that was started and perpetuated because of early ‘ 80s market returns under President Reagan. Instead, having a split legislature and some gridlock has historically been the most supportive of bullish environments. When i t comes to unemployment, DataTrek sees a likelihood that unemployment will remain around current levels of 7% – 8%. Entering 2020, some 20% of…

The Arm-Wrestling Match Between Human Interaction and Tech Advancements in the Bank Trust Industry 

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posted by CAPIS on 10/28/2020 at 10:34 am
by CAPIS on 10/28/2020

This was penned by CAPIS Staff   On October 14, CAPIS hosted a virtual panel on the state of the bank and trust services industry,  “Banking on Tech: Challenges and Innovations in Today’s Environment.” The virtual session, available to view in full here, was moderated by our own Jon Lantz, and featured as panelists Adam Unger, Accutech; Angie Gorman, Infovisa; Bill Martin III, INTRUST Bank; Jack Curran, GreenHill; and Stuart Allen, Association of Trust Organizations.  One theme rang true throughout the conversation – for all of the importance of technological adaptation and innovation, an absence of the human element is a detriment in the bank trust sector.  Everyone agreed that the logistical challenges presented by the onset of the COVID-19 pandemic were handled well, although they were acute. An at-the-office work standard and culture predominated the industry and preparedness exercises were predicated on a temporary interruption of normal operations, not a long-term reality shift. Now, the industry is in an optimization phase, figuring out what has been sorely missed.  There was a tailwind behind disintermediating people even prior to COVID-19, and now that wind is gale-force.  The trend is potentially troublesome given there is a valid reason why the wealth…

This was penned by CAPIS Staff   On October 14, CAPIS hosted a virtual panel on the state of the bank and trust services industry,  “Banking on Tech: Challenges and Innovations in Today’s Environment.” The virtual session, available to view in full here, was moderated by our own Jon Lantz, and featured as panelists Adam Unger, Accutech; Angie Gorman, Infovisa; Bill Martin III, INTRUST Bank; Jack Curran, GreenHill; and Stuart Allen, Association of Trust Organizations.  One theme rang true throughout the conversation – for all of the importance of technological adaptation and innovation, an absence of the human element is a detriment in the bank trust sector.  Everyone agreed that the logistical challenges presented by the onset of the COVID-19 pandemic were handled well, although they were acute. An at-the-office work standard and culture predominated the industry and preparedness exercises were predicated on a temporary interruption of normal operations, not a long-term reality shift. Now, the industry is in an optimization phase, figuring out what has been sorely missed.  There was a tailwind behind disintermediating people even prior to COVID-19, and now that wind is gale-force.  The trend is potentially troublesome given there is a valid reason why the wealth…

MiFID II: We Hardly Knew You…

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posted by CAPIS on 10/19/2020 at 11:13 am
by CAPIS on 10/19/2020

This was penned by CAPIS Staff Last week, CAPIS was fortunate to have the chance to participate in STA’s 87th Annual Market Structure Conference. CAPIS’ own Chris Halverson is STA’s current chairman (and helped emcee the event) while our COO Dave Choate moderated the panel, “The International Impact of MiFID II,” which featured Thompson, Siegel & Walmsley’s Director of Trading, Chip Coleman, and Integrity Research Associates’ Principal, Sandy Bragg. Given MiFID II’s tentacles have crept far beyond the confines of the European Union, and that there are changes afoot, we wanted to shed some light on the discussion if you were unable to attend. The key piece of collateral damage discussed is borne out by the data: research unbundling, one of the key provisions in MiFID II, is significantly hampering asset managers’ ability to achieve the same performance as they did prior to MiFID II’s implementation in 2018. Smaller managers are at a disadvantage compared to their larger counterparts as they are less likely to have internal analysts and economists to generate their own research to make up for the shortfall. And EU firms are falling short of their U.S. peers as research from Evercore ISI and Frost Consulting has…

This was penned by CAPIS Staff Last week, CAPIS was fortunate to have the chance to participate in STA’s 87th Annual Market Structure Conference. CAPIS’ own Chris Halverson is STA’s current chairman (and helped emcee the event) while our COO Dave Choate moderated the panel, “The International Impact of MiFID II,” which featured Thompson, Siegel & Walmsley’s Director of Trading, Chip Coleman, and Integrity Research Associates’ Principal, Sandy Bragg. Given MiFID II’s tentacles have crept far beyond the confines of the European Union, and that there are changes afoot, we wanted to shed some light on the discussion if you were unable to attend. The key piece of collateral damage discussed is borne out by the data: research unbundling, one of the key provisions in MiFID II, is significantly hampering asset managers’ ability to achieve the same performance as they did prior to MiFID II’s implementation in 2018. Smaller managers are at a disadvantage compared to their larger counterparts as they are less likely to have internal analysts and economists to generate their own research to make up for the shortfall. And EU firms are falling short of their U.S. peers as research from Evercore ISI and Frost Consulting has…

So, You Think You Can Trade Closed-End Funds, Eh?

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posted by CAPIS on 10/08/2020 at 10:56 am
by CAPIS on 10/08/2020

This article was penned by Russell Robinson   In an age of technological advancements, there is at least one market where technology is yet to take hold.  Trading closed-end funds on an institutional level. In the equity markets, it is fair to say that if you run institutional money, you have access to a wide array of trading algorithms to automate and manage your orders. Where this notion falls short, is with Closed-End Funds. How so, you may ask? Within ~500 Closed-End Funds that can be traded in the secondary markets, only about half have an average daily volume of greater than 50,000 shares. And much of the volume that is traded is crossed in blocks, rendering standard trading algorithms useless. So, where does one turn to effectively transact in this market? Ideally, you would find a firm that has the CEF experience and natural order flow to cross large blocks. Have you considered CAPIS?  With 40 years’ experience and a trading desk that boasts an average tenure of over 20 years, CAPIS has the experience to bring institutional CEF clients together.  Trading for some of the largest CEF managers on a daily basis, CAPIS provides access to natural liquidity. …

This article was penned by Russell Robinson   In an age of technological advancements, there is at least one market where technology is yet to take hold.  Trading closed-end funds on an institutional level. In the equity markets, it is fair to say that if you run institutional money, you have access to a wide array of trading algorithms to automate and manage your orders. Where this notion falls short, is with Closed-End Funds. How so, you may ask? Within ~500 Closed-End Funds that can be traded in the secondary markets, only about half have an average daily volume of greater than 50,000 shares. And much of the volume that is traded is crossed in blocks, rendering standard trading algorithms useless. So, where does one turn to effectively transact in this market? Ideally, you would find a firm that has the CEF experience and natural order flow to cross large blocks. Have you considered CAPIS?  With 40 years’ experience and a trading desk that boasts an average tenure of over 20 years, CAPIS has the experience to bring institutional CEF clients together.  Trading for some of the largest CEF managers on a daily basis, CAPIS provides access to natural liquidity. …

Can You See How Risk Was Managed?

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posted by CAPIS on 10/07/2020 at 10:08 am
by CAPIS on 10/07/2020

This is the third and final installment is our series on Transition Management   Without intraday exposure charts, it would be impossible to confirm a risk management strategy.  However, when equipped with those intraday sector exposure charts, you can see how the event was handled. The example below illustrates a clear effort to quickly reduce market and sector exposure imbalances. The dotted line represents market exposure, which became neutral to the target in the first few minutes. All other sectors were neutral by mid-day.   Below is an example that lacked a risk management strategy. The most obvious risk is market exposure represented by the dotted line. The portfolio began overexposed by $50 mil and reached $60 mil underexposed to the market at 13:30. This is risk clearly illustrated.   The CAPIS Difference: Since 1998, CAPIS has been a trusted independent provider for transition management services; Providing unique post-trade transparency. As a true independent agency broker, CAPIS does not have the conflicts associated with proprietary risk books, internal investment management or affiliated execution venues. Our focus is simple: provide clients with superior execution, complete transparency, and personal service. To learn more about CAPIS and how we can be a valuable…

This is the third and final installment is our series on Transition Management   Without intraday exposure charts, it would be impossible to confirm a risk management strategy.  However, when equipped with those intraday sector exposure charts, you can see how the event was handled. The example below illustrates a clear effort to quickly reduce market and sector exposure imbalances. The dotted line represents market exposure, which became neutral to the target in the first few minutes. All other sectors were neutral by mid-day.   Below is an example that lacked a risk management strategy. The most obvious risk is market exposure represented by the dotted line. The portfolio began overexposed by $50 mil and reached $60 mil underexposed to the market at 13:30. This is risk clearly illustrated.   The CAPIS Difference: Since 1998, CAPIS has been a trusted independent provider for transition management services; Providing unique post-trade transparency. As a true independent agency broker, CAPIS does not have the conflicts associated with proprietary risk books, internal investment management or affiliated execution venues. Our focus is simple: provide clients with superior execution, complete transparency, and personal service. To learn more about CAPIS and how we can be a valuable…

Can You Identify a Conflicted Crossing Trade?

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posted by CAPIS on 09/30/2020 at 10:30 am
by CAPIS on 09/30/2020

This is the second part in a three part series on Transition Management   Without intra-day trading transparency, it would be impossible to see a conflicted crossing trade.  However, when you combine intra-day volume with exposure imbalances, conflicted crosses jump off the page. In the example below, four conflicted crosses can easily be seen; all sells represented by the unusually high pink bars.  Based on the consistent level of buys and sells (red and blue bars), the transition manager apparently put this event on a basic time-slicer (this should be your first clue that execution and risk management are not high on their list of priorities). How do we know these crosses were conflicted?  Look at the sector exposure chart for this event.  The dotted line represents market exposure.  With each cross, the portfolio became less exposed to the market relative to its objective.  Bottom line, each cross provided more revenue to the transition manager while increasing performance risk for the client.  The conflict is clear.   The CAPIS Difference: Since 1998, CAPIS has been a trusted independent provider for transition management services; executing every position as if it were our own.  As a true independent agency broker, CAPIS does…

This is the second part in a three part series on Transition Management   Without intra-day trading transparency, it would be impossible to see a conflicted crossing trade.  However, when you combine intra-day volume with exposure imbalances, conflicted crosses jump off the page. In the example below, four conflicted crosses can easily be seen; all sells represented by the unusually high pink bars.  Based on the consistent level of buys and sells (red and blue bars), the transition manager apparently put this event on a basic time-slicer (this should be your first clue that execution and risk management are not high on their list of priorities). How do we know these crosses were conflicted?  Look at the sector exposure chart for this event.  The dotted line represents market exposure.  With each cross, the portfolio became less exposed to the market relative to its objective.  Bottom line, each cross provided more revenue to the transition manager while increasing performance risk for the client.  The conflict is clear.   The CAPIS Difference: Since 1998, CAPIS has been a trusted independent provider for transition management services; executing every position as if it were our own.  As a true independent agency broker, CAPIS does…

Can You Identify A Conflicted MOC Trade?

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posted by CAPIS on 09/22/2020 at 1:12 pm
by CAPIS on 09/22/2020

This is the first part in a three part series on Transition Management   Frankly, most people would have to say, “No.” Identifying a conflicted Market-on-Close (MOC) trade can be difficult, but we can show you how. It simply requires a fill-level execution file from your transition manager and some advanced intraday charting capabilities. Tell-tale signs of a conflicted principal trade: Single stock identifiers: Fill-level prints that are larger than the market’s closing print For example, if your fund sold 120,000 shares of XYZ at the close, but the closing print in the market was only 80,000 shares, your trade was executed by a principal desk. Look for unusual price action prior to the close. Portfolio level indicators: Dramatic price disparity in the final hour of trading After charting the portfolio disparity between the target and legacy, look for an inflection point in the final hour. In the example below, the black line represents the implicit cost as measured by the difference between buys and sells. Note the inflection point at 15:40, 20 minutes before the close. This portfolio lost over 100 bps in the final 30 minutes. The CAPIS Difference: Since 1998, CAPIS has been a trusted independent provider…

This is the first part in a three part series on Transition Management   Frankly, most people would have to say, “No.” Identifying a conflicted Market-on-Close (MOC) trade can be difficult, but we can show you how. It simply requires a fill-level execution file from your transition manager and some advanced intraday charting capabilities. Tell-tale signs of a conflicted principal trade: Single stock identifiers: Fill-level prints that are larger than the market’s closing print For example, if your fund sold 120,000 shares of XYZ at the close, but the closing print in the market was only 80,000 shares, your trade was executed by a principal desk. Look for unusual price action prior to the close. Portfolio level indicators: Dramatic price disparity in the final hour of trading After charting the portfolio disparity between the target and legacy, look for an inflection point in the final hour. In the example below, the black line represents the implicit cost as measured by the difference between buys and sells. Note the inflection point at 15:40, 20 minutes before the close. This portfolio lost over 100 bps in the final 30 minutes. The CAPIS Difference: Since 1998, CAPIS has been a trusted independent provider…

Why CAPIS?  Why Now?

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posted by CAPIS on 09/09/2020 at 10:01 am
by CAPIS on 09/09/2020

Penned by Ann Sebert, CEO and President   When I’m asked, “What is the biggest challenge for CAPIS?” My response has always been, “Recognition.” Throughout my career at CAPIS, I spent time on the financial side of the business, and while I knew the firm’s sizable footprint in the industry, I was not in a position to lead the effort promoting CAPIS. That all changed in January 2020, when I assumed the position of CEO. Since taking on this new role, my management team and I have made telling CAPIS’ story a priority as we enter the next chapter of our history as a leading broker for institutional asset managers. CAPIS has always been a trusted, compliance-driven partner to our clients, but for 40-plus years, our marketing efforts were solely word of mouth. Our client base is now over 1,000 strong, with many of those client relationships dating back to CAPIS’ founding in 1977, but still we’re asked, “What is CAPIS?” It’s time to tell our story and spread the word about CAPIS. As such, we have formalized our mission statement: CAPIS is a compliance-driven brokerage firm, transacting financial assets for institutional investors. Our mission is to be the standard for…

Penned by Ann Sebert, CEO and President   When I’m asked, “What is the biggest challenge for CAPIS?” My response has always been, “Recognition.” Throughout my career at CAPIS, I spent time on the financial side of the business, and while I knew the firm’s sizable footprint in the industry, I was not in a position to lead the effort promoting CAPIS. That all changed in January 2020, when I assumed the position of CEO. Since taking on this new role, my management team and I have made telling CAPIS’ story a priority as we enter the next chapter of our history as a leading broker for institutional asset managers. CAPIS has always been a trusted, compliance-driven partner to our clients, but for 40-plus years, our marketing efforts were solely word of mouth. Our client base is now over 1,000 strong, with many of those client relationships dating back to CAPIS’ founding in 1977, but still we’re asked, “What is CAPIS?” It’s time to tell our story and spread the word about CAPIS. As such, we have formalized our mission statement: CAPIS is a compliance-driven brokerage firm, transacting financial assets for institutional investors. Our mission is to be the standard for…

Is CAPIS the Oldest Outsourced Trading Firm?

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posted by CAPIS on 09/08/2020 at 9:55 am
by CAPIS on 09/08/2020

Penned by Chris Hurley, Director, Institutional Sales   Although Outsourced Trading is a relatively new term for the industry, CAPIS has been providing this service for over 30 years. Let that sink in – 30 years. For decades smaller managers have foregone the expense of building a trading desk and instead have relied on CAPIS to represent them in the market.  Once the old exchange model morphed into the plethora of execution venues we have today, having a broker that is not conflicted with proprietary trading became a top criterion. CAPIS has never had to “brand” itself as an Outsourced Trading desk.  Acting solely in the client’s best interest is something CAPIS has done since the beginning.  CAPIS has no internal risk book or market making business, nor are we beholden to any affiliated trading venues.  While others must segregate their Outsourced desk to minimize internal conflicts, CAPIS has not changed a thing; we have been trading our client’s assets as if they were our own since our inception in 1977. Our clients who traffic in small and mid-cap names greatly appreciate that they can show CAPIS their entire order.  They know that we have their best interest at heart,…

Penned by Chris Hurley, Director, Institutional Sales   Although Outsourced Trading is a relatively new term for the industry, CAPIS has been providing this service for over 30 years. Let that sink in – 30 years. For decades smaller managers have foregone the expense of building a trading desk and instead have relied on CAPIS to represent them in the market.  Once the old exchange model morphed into the plethora of execution venues we have today, having a broker that is not conflicted with proprietary trading became a top criterion. CAPIS has never had to “brand” itself as an Outsourced Trading desk.  Acting solely in the client’s best interest is something CAPIS has done since the beginning.  CAPIS has no internal risk book or market making business, nor are we beholden to any affiliated trading venues.  While others must segregate their Outsourced desk to minimize internal conflicts, CAPIS has not changed a thing; we have been trading our client’s assets as if they were our own since our inception in 1977. Our clients who traffic in small and mid-cap names greatly appreciate that they can show CAPIS their entire order.  They know that we have their best interest at heart,…

Employee Spotlight: Kelly Eskildsen

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posted by CAPIS on 09/03/2020 at 11:25 am
by CAPIS on 09/03/2020

At CAPIS, we put relationships first. We think of our team as a family, which is why it is important for us to get to know each member and shine a spotlight on them. To that end, we sat down with one of our senior equity traders, Kelly Eskildsen , to discuss how she got started in the trading industry, some of the best moments during her 17 years at CAPIS, and her hobbies and interests outside of work. What piqued your interest in the financial services industry? I first became interested in this industry because a really good family friend was working as a market maker at Southwest Securities, which is where I eventually had my first job. She would tell me stories about trading while I was in college at Iowa State. Until that time, I thought I’d always be working on my family’s farm in Iowa. The conversations that I had with her are what first piqued my interest. What was your first role at CAPIS? I was working at the agency-only call desk at Southwest Securities and, from watching market makers, I became interested in the trading side. When I found out there was an opening…

At CAPIS, we put relationships first. We think of our team as a family, which is why it is important for us to get to know each member and shine a spotlight on them. To that end, we sat down with one of our senior equity traders, Kelly Eskildsen , to discuss how she got started in the trading industry, some of the best moments during her 17 years at CAPIS, and her hobbies and interests outside of work. What piqued your interest in the financial services industry? I first became interested in this industry because a really good family friend was working as a market maker at Southwest Securities, which is where I eventually had my first job. She would tell me stories about trading while I was in college at Iowa State. Until that time, I thought I’d always be working on my family’s farm in Iowa. The conversations that I had with her are what first piqued my interest. What was your first role at CAPIS? I was working at the agency-only call desk at Southwest Securities and, from watching market makers, I became interested in the trading side. When I found out there was an opening…

TRADING UPDATE: Bond Trading “Concierge Style”

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posted by CAPIS on 08/26/2020 at 1:44 pm
by CAPIS on 08/26/2020

Penned by David Lee, Director, Fixed Income Trading Have you ever executed a bond trade and wondered if you got the best price? How could you know? The solution is simple: Use your own personal shopper. At CAPIS, we will search a network of more than 70 broker dealers, including all primaries to find you the best price. Think of us as your own personal shopper. Need to liquidate a portfolio or find matching corporates? CAPIS can help. Looking for a specific bond(s) to build or adjust a portfolio or fill out a maturity ladder? CAPIS can help. The CAPIS Difference? • Trade execution where the only bias is on execution performance without the conflict a risk position brings • Access to broker-dealer networks, electronic platforms (broker-to-broker and all-to-all), and international counterparties • Single contact point that will complement and expand existing coverage • Client anonymity • Woman owned – Women’s Business Enterprise National Council certified At CAPIS, we provide unparalleled concierge service among fixed income trading desks. Every time. That’s the CAPIS Difference. Let us be your personal bond shopper. To take advantage of our services, call David Lee, Ray Prisco, or Aaron Bernstein at (800) 247-8888 or reach…

Penned by David Lee, Director, Fixed Income Trading Have you ever executed a bond trade and wondered if you got the best price? How could you know? The solution is simple: Use your own personal shopper. At CAPIS, we will search a network of more than 70 broker dealers, including all primaries to find you the best price. Think of us as your own personal shopper. Need to liquidate a portfolio or find matching corporates? CAPIS can help. Looking for a specific bond(s) to build or adjust a portfolio or fill out a maturity ladder? CAPIS can help. The CAPIS Difference? • Trade execution where the only bias is on execution performance without the conflict a risk position brings • Access to broker-dealer networks, electronic platforms (broker-to-broker and all-to-all), and international counterparties • Single contact point that will complement and expand existing coverage • Client anonymity • Woman owned – Women’s Business Enterprise National Council certified At CAPIS, we provide unparalleled concierge service among fixed income trading desks. Every time. That’s the CAPIS Difference. Let us be your personal bond shopper. To take advantage of our services, call David Lee, Ray Prisco, or Aaron Bernstein at (800) 247-8888 or reach…

The Bright Side

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posted by CAPIS on 08/21/2020 at 9:18 am
by CAPIS on 08/21/2020

The following was penned by Chris Halverson, STA Chairman and Senior Vice President, Institutional Sales at CAPIS I think we can all agree that 2020 hasn’t played out how we thought. It’s mid-August — ‘Back to School’ season for those of us with younger children — but instead of shopping for new clothes, backpacks and other supplies, we’re making sure that we have enough bandwidth to accommodate our kids’ virtual learning platforms. In many ways, this year has been a complete blindside as we continue to deal with COVID-19. Regardless of who you are, what you do or where you live, you’ve felt the impact. Chances are, it hasn’t been good. There is a bright side, however, that is starting to appear. Businesses and society have adapted, albeit at a pace that many would consider breakneck speed. We are all doing things and behaving differently than we were just a few short months ago, and hopefully, we are noticing some positive results. Some are small, like the simple pleasure of playing Monopoly with my girls during lunch break. Even though I lost, it was a wonderful moment. Some are more meaningful, like discovering the need for a better work/life balance and reinvesting in relationships.…

The following was penned by Chris Halverson, STA Chairman and Senior Vice President, Institutional Sales at CAPIS I think we can all agree that 2020 hasn’t played out how we thought. It’s mid-August — ‘Back to School’ season for those of us with younger children — but instead of shopping for new clothes, backpacks and other supplies, we’re making sure that we have enough bandwidth to accommodate our kids’ virtual learning platforms. In many ways, this year has been a complete blindside as we continue to deal with COVID-19. Regardless of who you are, what you do or where you live, you’ve felt the impact. Chances are, it hasn’t been good. There is a bright side, however, that is starting to appear. Businesses and society have adapted, albeit at a pace that many would consider breakneck speed. We are all doing things and behaving differently than we were just a few short months ago, and hopefully, we are noticing some positive results. Some are small, like the simple pleasure of playing Monopoly with my girls during lunch break. Even though I lost, it was a wonderful moment. Some are more meaningful, like discovering the need for a better work/life balance and reinvesting in relationships.…

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