CAPIS Insights

54 total posts

Employee Spotlight – Ben Jenkins, Director, Transition Management

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posted by CAPIS on 06/08/2021 at 10:02 am
by CAPIS on 06/08/2021

  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 Ben Jenkins, Director, Transition Management, who re-joined CAPIS at the end of 2020. Take a look at our conversation below to learn about why he returned to CAPIS after spending some time away, some of the biggest challenges and successes he’s experienced during his career and during the pandemic, as well as how he has learned to step out of his comfort zone. [Note: This conversation has been edited for length and clarity.] Q. How did you get interested in transition management and CAPIS? I first joined CAPIS in 2002 after working at a few start-ups. I found the job posting on www.Monster.com and was able to secure an interview. Transition management helps broaden my financial education through client engagement, which I really enjoy. The chance to help solve a problem drives my passion daily. Q. Why return to CAPIS after 16 years? CAPIS is where I started my career and my love of transition management. The opportunity to…

  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 Ben Jenkins, Director, Transition Management, who re-joined CAPIS at the end of 2020. Take a look at our conversation below to learn about why he returned to CAPIS after spending some time away, some of the biggest challenges and successes he’s experienced during his career and during the pandemic, as well as how he has learned to step out of his comfort zone. [Note: This conversation has been edited for length and clarity.] Q. How did you get interested in transition management and CAPIS? I first joined CAPIS in 2002 after working at a few start-ups. I found the job posting on www.Monster.com and was able to secure an interview. Transition management helps broaden my financial education through client engagement, which I really enjoy. The chance to help solve a problem drives my passion daily. Q. Why return to CAPIS after 16 years? CAPIS is where I started my career and my love of transition management. The opportunity to…

May Research Call RECAP: Katie Stockton on Market Momentum

CAPIS Insights

CAPIS Insights

posted by CAPIS on 05/26/2021 at 9:09 am
by CAPIS on 05/26/2021

  Last week we held our May research call featuring Katie Stockton, the co-founder of Fairlead Strategies, who provided specific capital markets and digital currency commentary. Katie is a regular speaker on CAPIS monthly research calls and is a renowned media participant. Click here for the research call video US Equities: There has been “lots of action,” but prices and risk bear scrutiny. Stockton said there was a lack of commitment to chase the market higher when valuations are getting uncomfortable to people. Her technical analysis of the U.S. equities universe showed: The market remains in an uptrend, but that would be in jeopardy should the S&P cross its 50-day moving average. Momentum has deteriorated, but long-term momentum is positive behind major indices. Steep uptrends often need to take a pause to refresh themselves, and that’s what investors are now facing. Large-cap tech stocks show overbought downturns, and the expectation is for more price pullbacks and some choppiness. Small-caps have lost momentum and relative strength. This year should be more about value than growth on a relative basis.   Commodity Prices Commodities’ outstanding upside momentum points to further rising prices Of note are lumber, copper, and corn. Keep an eye on commodities that…

  Last week we held our May research call featuring Katie Stockton, the co-founder of Fairlead Strategies, who provided specific capital markets and digital currency commentary. Katie is a regular speaker on CAPIS monthly research calls and is a renowned media participant. Click here for the research call video US Equities: There has been “lots of action,” but prices and risk bear scrutiny. Stockton said there was a lack of commitment to chase the market higher when valuations are getting uncomfortable to people. Her technical analysis of the U.S. equities universe showed: The market remains in an uptrend, but that would be in jeopardy should the S&P cross its 50-day moving average. Momentum has deteriorated, but long-term momentum is positive behind major indices. Steep uptrends often need to take a pause to refresh themselves, and that’s what investors are now facing. Large-cap tech stocks show overbought downturns, and the expectation is for more price pullbacks and some choppiness. Small-caps have lost momentum and relative strength. This year should be more about value than growth on a relative basis.   Commodity Prices Commodities’ outstanding upside momentum points to further rising prices Of note are lumber, copper, and corn. Keep an eye on commodities that…

How Many Solutions Do Your Transition Managers Provide?

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posted by CAPIS on 05/18/2021 at 10:12 am
by CAPIS on 05/18/2021

(hint: the correct answer is more than one) Asset allocation is an essential part of every institutional investor’s strategy. But it is also an occasional activity for most, with months if not years between events. So, when events arise, it is common practice to look to the transition management community for guidance and assistance on the best approach to implement the change while minimizing costs and risks to the portfolio. Given the infrequency between events, asset owners may not always be ready to ask the most pertinent questions for the event. And, to be fair, these questions change based upon the unique structure of each transition (or asset allocation) event. While the phrase can be overused, there is no “one size fits all” solution for transitions; there is rarely just one solution possible. Recently a client approached us with a transition to move from an active (separate) account to a passive (commingled) fund. They asked for guidance from at least one other provider and received a single solution. In comparison, our response included seven strategies, ranging from near-instant equitization to a more delayed trade implementation. In each strategy, we outlined the requirements, the risks, and the benefits. Some of you…

(hint: the correct answer is more than one) Asset allocation is an essential part of every institutional investor’s strategy. But it is also an occasional activity for most, with months if not years between events. So, when events arise, it is common practice to look to the transition management community for guidance and assistance on the best approach to implement the change while minimizing costs and risks to the portfolio. Given the infrequency between events, asset owners may not always be ready to ask the most pertinent questions for the event. And, to be fair, these questions change based upon the unique structure of each transition (or asset allocation) event. While the phrase can be overused, there is no “one size fits all” solution for transitions; there is rarely just one solution possible. Recently a client approached us with a transition to move from an active (separate) account to a passive (commingled) fund. They asked for guidance from at least one other provider and received a single solution. In comparison, our response included seven strategies, ranging from near-instant equitization to a more delayed trade implementation. In each strategy, we outlined the requirements, the risks, and the benefits. Some of you…

EMPLOYEE SPOTLIGHT: David Lee, Director of Fixed Income Trading

CAPIS Insights

CAPIS Insights

posted by CAPIS on 05/11/2021 at 10:00 am
by CAPIS on 05/11/2021

At CAPIS, we put relationships first. We think of our team as a family, which is why we not only get to know each member but find it important to shine a spotlight on them as individuals. In this installment of our Employee Spotlight series, we spoke with David Lee, our Director of Fixed-Income Trading, who has worked at CAPIS for 12 years. Take a look at our conversation below to learn about how he came to work at CAPIS, his start in fixed-income trading, some of the biggest challenges and successes he’s experienced, and his desire to enjoy live sports again. [Note: This conversation has been edited for length and clarity.]   How did you get your start in finance or the capital markets? Did you go to school for this or something else? I have an undergraduate degree in Accounting and worked in the Corporate Finance and Treasury departments at FedEx. After that, I was hired to join the bond division of First Tennessee Bank by the head of the division, Jimmy Hughes. How has fixed income trading changed during the pandemic? How is it changed over the course of your career? I have found communication with clients…

At CAPIS, we put relationships first. We think of our team as a family, which is why we not only get to know each member but find it important to shine a spotlight on them as individuals. In this installment of our Employee Spotlight series, we spoke with David Lee, our Director of Fixed-Income Trading, who has worked at CAPIS for 12 years. Take a look at our conversation below to learn about how he came to work at CAPIS, his start in fixed-income trading, some of the biggest challenges and successes he’s experienced, and his desire to enjoy live sports again. [Note: This conversation has been edited for length and clarity.]   How did you get your start in finance or the capital markets? Did you go to school for this or something else? I have an undergraduate degree in Accounting and worked in the Corporate Finance and Treasury departments at FedEx. After that, I was hired to join the bond division of First Tennessee Bank by the head of the division, Jimmy Hughes. How has fixed income trading changed during the pandemic? How is it changed over the course of your career? I have found communication with clients…

Bank Trust Roundtable RECAP: Risk Surrounds Low-Priced Stock Trading 

CAPIS Insights

CAPIS Insights

posted by CAPIS on 05/10/2021 at 4:26 pm
by CAPIS on 05/10/2021

  Last week, CAPIS held a virtual panel event “Bank Trust: Trading in Low-Priced Stocks,” featuring Steve McCabe, Bill Stone, and CAPIS’ own Jason Christian and Michael Aguilera. The roundtable, moderated by Jon Lantz, examined the confluence of events that have led to an increase in low-priced stock trading and the consequent challenges faced by broker-dealers, custodians, and compliance departments. Click here for the full virtual panel video   The lively discussion began with CAPIS CCO and General Counsel Jason Christian, who built upon the traditional definition of low-priced stocks — those that trade under $5/share. Christian explained his view that this definition leaves much to be desired, as recent lower-priced stock trading trends and subsequent regulatory scrutiny has centered on securities priced at $1 dollar or less, micro-cap stocks, and Pink Sheet/OTC securities. From a broker-dealer perspective and from the regulatory point of view, these stocks warrant a closer review due to surrounding fraud and anti-money laundering concerns. From a custodial vantage point, Steve McCabe, Vice President and Senior Product Manager at Fifth Third Bank, said he receives myriad inquiries from clients, regulators, depository institutions, and broker-dealers on these types of securities. They have programs in place to monitor the…

  Last week, CAPIS held a virtual panel event “Bank Trust: Trading in Low-Priced Stocks,” featuring Steve McCabe, Bill Stone, and CAPIS’ own Jason Christian and Michael Aguilera. The roundtable, moderated by Jon Lantz, examined the confluence of events that have led to an increase in low-priced stock trading and the consequent challenges faced by broker-dealers, custodians, and compliance departments. Click here for the full virtual panel video   The lively discussion began with CAPIS CCO and General Counsel Jason Christian, who built upon the traditional definition of low-priced stocks — those that trade under $5/share. Christian explained his view that this definition leaves much to be desired, as recent lower-priced stock trading trends and subsequent regulatory scrutiny has centered on securities priced at $1 dollar or less, micro-cap stocks, and Pink Sheet/OTC securities. From a broker-dealer perspective and from the regulatory point of view, these stocks warrant a closer review due to surrounding fraud and anti-money laundering concerns. From a custodial vantage point, Steve McCabe, Vice President and Senior Product Manager at Fifth Third Bank, said he receives myriad inquiries from clients, regulators, depository institutions, and broker-dealers on these types of securities. They have programs in place to monitor the…

CAPIS Ownership Succession Transition Plan

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posted by CAPIS on 05/04/2021 at 10:01 am
by CAPIS on 05/04/2021

May 4. 2021   Ownership Changes/Succession Strategy   To all CAPIS Employees/Clients: In a move designed to ensure our long-term success and stability, Capital Institutional Services, Inc. (CAPIS) is proud to announce the initiation of a two-step succession strategy.  It is important to note that the Potts family will retain control of the firm and that these changes will only serve to improve our core businesses: global execution services, commission management, outsourced trading, and transition management. Step One, characterized by the shift of majority ownership to Cullen Potts, was effective May 1, 2021.  Cullen has worked with CAPIS for over 20 years and brings a wealth of outside business experience to the table.  “Cullen’s enthusiastic, hands-on approach is well known within the CAPIS family.  We are excited to have Cullen taking the reins,” Ann Sebert, CEO. Step Two is Employee Ownership.  Targeting year end, CAPIS intends to implement employee ownership opportunities.  “While the structure and timing have not been finalized, it is my intent to provide ownership opportunities to those that have helped me build this wonderful organization,” Don Potts, Founder and Chairman of the Board. As a result of these exciting changes, CAPIS will be withdrawing our Women’s Business…

May 4. 2021   Ownership Changes/Succession Strategy   To all CAPIS Employees/Clients: In a move designed to ensure our long-term success and stability, Capital Institutional Services, Inc. (CAPIS) is proud to announce the initiation of a two-step succession strategy.  It is important to note that the Potts family will retain control of the firm and that these changes will only serve to improve our core businesses: global execution services, commission management, outsourced trading, and transition management. Step One, characterized by the shift of majority ownership to Cullen Potts, was effective May 1, 2021.  Cullen has worked with CAPIS for over 20 years and brings a wealth of outside business experience to the table.  “Cullen’s enthusiastic, hands-on approach is well known within the CAPIS family.  We are excited to have Cullen taking the reins,” Ann Sebert, CEO. Step Two is Employee Ownership.  Targeting year end, CAPIS intends to implement employee ownership opportunities.  “While the structure and timing have not been finalized, it is my intent to provide ownership opportunities to those that have helped me build this wonderful organization,” Don Potts, Founder and Chairman of the Board. As a result of these exciting changes, CAPIS will be withdrawing our Women’s Business…

April Research Call RECAP: Nick Colas Says US Will Lead Recovery

CAPIS Insights

CAPIS Insights

posted by CAPIS on 04/21/2021 at 10:11 am
by CAPIS on 04/21/2021

  Last week we held our April research call, featuring Nicholas Colas, co-founder of DataTrek Research. Nick was joined by his co-founder Jessica Rabe as they both provided specific capital markets commentary. Nick is a regular speaker on CAPIS monthly research calls, and is a renowned media participant. Click here for the research call video Our own Dave Choate, COO & Executive Director of Sales and Trading, started the call with an update on commissions from CAPIS’ Q1 data and experiences. Choate explained that in analyzing over $600 billion in stock trading and custody data from CAPIS clients, he found that commission rates (full-service rates paid for bundled research) were up to their highest since 2017. Citing the data, Choate said over 75% of trades were executed at full-service rates, higher than the 73% seen in 2020 and up from 68% in 2019. Choate also spoke briefly about the upcoming May 6th virtual roundtable hosted by CAPIS, a discussion that will focus on low-priced stocks and how to avoid AML compliance issues. Stay tuned for details. Colas’ presentation provided the following insights: U.S. Geopolitics Investors have demonstrated that they are focused predominantly on the size and longevity of fiscal and…

  Last week we held our April research call, featuring Nicholas Colas, co-founder of DataTrek Research. Nick was joined by his co-founder Jessica Rabe as they both provided specific capital markets commentary. Nick is a regular speaker on CAPIS monthly research calls, and is a renowned media participant. Click here for the research call video Our own Dave Choate, COO & Executive Director of Sales and Trading, started the call with an update on commissions from CAPIS’ Q1 data and experiences. Choate explained that in analyzing over $600 billion in stock trading and custody data from CAPIS clients, he found that commission rates (full-service rates paid for bundled research) were up to their highest since 2017. Citing the data, Choate said over 75% of trades were executed at full-service rates, higher than the 73% seen in 2020 and up from 68% in 2019. Choate also spoke briefly about the upcoming May 6th virtual roundtable hosted by CAPIS, a discussion that will focus on low-priced stocks and how to avoid AML compliance issues. Stay tuned for details. Colas’ presentation provided the following insights: U.S. Geopolitics Investors have demonstrated that they are focused predominantly on the size and longevity of fiscal and…

Employee Spotlight – Jannette Vasquez, Manager of Client Services

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posted by CAPIS on 03/31/2021 at 9:20 am
by CAPIS on 03/31/2021

  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 spoke with Jannette Vasquez, VP, Manager of Client Services, who has worked at CAPIS for 20 years. Take a look at our conversation below to learn about how she came to work at CAPIS, and some of the biggest challenges and successes she’s experienced over the past two decades, as well as her long-standing desire to keep the record straight.  [Note: This conversation has been edited for length and clarity.] Q: What piqued your interest in finance? How did you find yourself at CAPIS?  I didn’t have a large market background before CAPIS. Accounting-type work interested me, not so much finance and trading. The company I had been working for went through layoffs — I was an event planner for a property management company, and they weren’t doing great. A friend of mine worked at CAPIS in the trading group at the time and they were able to help make the connection.  I expressed to CAPIS’ CFO that when I used to balance my…

  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 spoke with Jannette Vasquez, VP, Manager of Client Services, who has worked at CAPIS for 20 years. Take a look at our conversation below to learn about how she came to work at CAPIS, and some of the biggest challenges and successes she’s experienced over the past two decades, as well as her long-standing desire to keep the record straight.  [Note: This conversation has been edited for length and clarity.] Q: What piqued your interest in finance? How did you find yourself at CAPIS?  I didn’t have a large market background before CAPIS. Accounting-type work interested me, not so much finance and trading. The company I had been working for went through layoffs — I was an event planner for a property management company, and they weren’t doing great. A friend of mine worked at CAPIS in the trading group at the time and they were able to help make the connection.  I expressed to CAPIS’ CFO that when I used to balance my…

March Research Call Recap: Fairlead Strategies’ Katie Stockton on Long-Term Momentum

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posted by CAPIS on 03/23/2021 at 9:09 am
by CAPIS on 03/23/2021

This article was penned by CAPIS Last week we held our March research call, featuring Katie Stockton, founder of Fairlead Strategies. Stockton, a regular speaker on CAPIS research calls, is a renowned technical analyst who appears frequently on media outlets like CNBC. Click here for the research call video Our own Ed O’Dowd, Senior Vice President, Institutional Sales, started the call with an update on the day’s market activity – noting that despite pressure on the equities market, investors were still eager to purchase stocks (but with an eye to specific sectors). Furthermore, O’Dowd said that the Federal Reserve’s recent two-day meeting was now in the market’s rearview mirror without interest rate policy change, and that was a positive for stocks. Fairlead’s Stockton began her presentation by examining the market’s bearish moves in light of the spike in U.S. Treasury yields, saying that despite stocks suffering from a short-term oversold bias, the market remains solid moving forward. “We see long-term momentum to the upside continuing” for stocks, she said. This forecast for long-term strength, she added, will be supported by a continued decline in volatility (as measured by the VIX). “The market can avoid a ‘big’ correction in a lower…

This article was penned by CAPIS Last week we held our March research call, featuring Katie Stockton, founder of Fairlead Strategies. Stockton, a regular speaker on CAPIS research calls, is a renowned technical analyst who appears frequently on media outlets like CNBC. Click here for the research call video Our own Ed O’Dowd, Senior Vice President, Institutional Sales, started the call with an update on the day’s market activity – noting that despite pressure on the equities market, investors were still eager to purchase stocks (but with an eye to specific sectors). Furthermore, O’Dowd said that the Federal Reserve’s recent two-day meeting was now in the market’s rearview mirror without interest rate policy change, and that was a positive for stocks. Fairlead’s Stockton began her presentation by examining the market’s bearish moves in light of the spike in U.S. Treasury yields, saying that despite stocks suffering from a short-term oversold bias, the market remains solid moving forward. “We see long-term momentum to the upside continuing” for stocks, she said. This forecast for long-term strength, she added, will be supported by a continued decline in volatility (as measured by the VIX). “The market can avoid a ‘big’ correction in a lower…

Recapping “RIAs and Outsourced Trading: What You Need to Know To Navigate the Markets” 

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posted by CAPIS on 03/11/2021 at 9:09 am
by CAPIS on 03/11/2021

This article was penned by CAPIS On February 25th, CAPIS hosted the second of its virtual panels, “RIAs and Outsourced Trading: What You Need to Know To Navigate the Markets.” View the full recording here.  The panel featured: Mark Viani (Moderator), Director of Institutional Sales, ARC Product Manager, CAPIS  Matt Krebs, Director of Outsourced Trading, CAPIS  Chris Hurley, Director of Institutional Sales, CAPIS  David Krebs, Principal & COO at Signia Capital Management  Marc Van Rijssen, Director of Operations, UX Wealth Partners  The discussion centered on the operational processes and intricate requirements for when registered investment advisors (RIAs) consider outsourcing, either in whole or part, the aggregation of their institutional and wrap/custodial platform orders. On the subject of outsourced trading, Hurley said that clients are choosing to divert their attention from costly and time consuming operational and execution processes to focus on portfolio management and increased alpha generation. David Krebs estimated that the migration  of his prior  labor and capital intensive process to a complete outsourced trading solution saves his firm ~$150,000/year.  Other topics covered included: Operational complexities RIAs encounter when contemplating outsourcing. The aggregation and execution of institutional and wrap/custodial platform orders. Negotiating the elimination of “trade-away” penalties. Payment for…

This article was penned by CAPIS On February 25th, CAPIS hosted the second of its virtual panels, “RIAs and Outsourced Trading: What You Need to Know To Navigate the Markets.” View the full recording here.  The panel featured: Mark Viani (Moderator), Director of Institutional Sales, ARC Product Manager, CAPIS  Matt Krebs, Director of Outsourced Trading, CAPIS  Chris Hurley, Director of Institutional Sales, CAPIS  David Krebs, Principal & COO at Signia Capital Management  Marc Van Rijssen, Director of Operations, UX Wealth Partners  The discussion centered on the operational processes and intricate requirements for when registered investment advisors (RIAs) consider outsourcing, either in whole or part, the aggregation of their institutional and wrap/custodial platform orders. On the subject of outsourced trading, Hurley said that clients are choosing to divert their attention from costly and time consuming operational and execution processes to focus on portfolio management and increased alpha generation. David Krebs estimated that the migration  of his prior  labor and capital intensive process to a complete outsourced trading solution saves his firm ~$150,000/year.  Other topics covered included: Operational complexities RIAs encounter when contemplating outsourcing. The aggregation and execution of institutional and wrap/custodial platform orders. Negotiating the elimination of “trade-away” penalties. Payment for…

Sarah’s Circle Winter Walk: A Mile in Her Shoes

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posted by CAPIS on 03/09/2021 at 11:00 am
by CAPIS on 03/09/2021

This article was penned by CAPIS At CAPIS, we understand the importance of giving back. For years, participating in philanthropic events has been a part of our core values, and as it is Women’s History Month, we are proud to support organizations who specifically target improving the lives of women and children. One of those is Sarah’s Circle, a non-profit organization with a mission of serving women who are homeless or in need of a safe space. On February 28, we sponsored its annual Winter Walk. For nearly three decades, Winter Walk: A Mile in Her Shoes has rallied support for women who are homeless in Chicago. By highlighting the extreme hardships women who are homeless face during Chicago’s harsh winter months, Winter Walk is an opportunity to make a lasting impact on the lives of these women. We are proud to announce that Sarah’s Circle exceeded their goal, and raised $230,809 from the Winter Walk. If you have questions, or would like more information about Sarah’s Circle, you can visit the website at sarahs-circle.org. Additionally, if you are interested in supporting its mission, you can donate here.

This article was penned by CAPIS At CAPIS, we understand the importance of giving back. For years, participating in philanthropic events has been a part of our core values, and as it is Women’s History Month, we are proud to support organizations who specifically target improving the lives of women and children. One of those is Sarah’s Circle, a non-profit organization with a mission of serving women who are homeless or in need of a safe space. On February 28, we sponsored its annual Winter Walk. For nearly three decades, Winter Walk: A Mile in Her Shoes has rallied support for women who are homeless in Chicago. By highlighting the extreme hardships women who are homeless face during Chicago’s harsh winter months, Winter Walk is an opportunity to make a lasting impact on the lives of these women. We are proud to announce that Sarah’s Circle exceeded their goal, and raised $230,809 from the Winter Walk. If you have questions, or would like more information about Sarah’s Circle, you can visit the website at sarahs-circle.org. Additionally, if you are interested in supporting its mission, you can donate here.

Approaching Diversity in Financial Services As a Small- or Mid-Sized Firm

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posted by CAPIS on 03/03/2021 at 10:28 am
by CAPIS on 03/03/2021

This article was penned by CAPIS Today, one of the best investments a financial services firm makes is in its diversity and inclusion efforts. The financial industry has been making some progress on this front, but still has a long way to go. The industry knows it needs to improve. Last year, the U.S. House Committee on Financial Services released its first report on Diversity and Inclusion, specifically looking at large banks — all 44 banks asked to participate acknowledged the need to do more.  Earlier in the year, CAPIS’ Coleen Donohue spoke with Liz Whitehead and Heather Cox, co-founders of business consultancy Diversity Masterminds™, about what small- and medium-sized businesses can do to compete with large firms that have more resources to devote to D&I. They mentioned that for any business, investment in internal D&I efforts (like hiring practices), as well as external ones (like supplier diversity programs), leads to better performance of the business. We wanted to drill into that sentiment, especially since the bottom line will move even the most stubborn firm into action. The research is clear — more diverse firms do better. According to McKinsey, those companies in the top quartile for ethnic and racial…

This article was penned by CAPIS Today, one of the best investments a financial services firm makes is in its diversity and inclusion efforts. The financial industry has been making some progress on this front, but still has a long way to go. The industry knows it needs to improve. Last year, the U.S. House Committee on Financial Services released its first report on Diversity and Inclusion, specifically looking at large banks — all 44 banks asked to participate acknowledged the need to do more.  Earlier in the year, CAPIS’ Coleen Donohue spoke with Liz Whitehead and Heather Cox, co-founders of business consultancy Diversity Masterminds™, about what small- and medium-sized businesses can do to compete with large firms that have more resources to devote to D&I. They mentioned that for any business, investment in internal D&I efforts (like hiring practices), as well as external ones (like supplier diversity programs), leads to better performance of the business. We wanted to drill into that sentiment, especially since the bottom line will move even the most stubborn firm into action. The research is clear — more diverse firms do better. According to McKinsey, those companies in the top quartile for ethnic and racial…

February Research Call Recap: Nicholas Colas on the “Biden Effect”

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posted by CAPIS on 02/25/2021 at 10:16 am
by CAPIS on 02/25/2021

This article was penned by CAPIS   Last week we held our February research call, featuring Nicholas Colas, co-founder of DataTrek Research. Colas is a regular speaker on the CAPIS research call and respected commentator on financial markets.  Our own David Choate, COO & Executive Director of Sales and Trading, started the call with an update on CAPIS’ status given the effects of recent winter weather in Texas and the resultant power grid failure and disruptions. Choate explained to attendees CAPIS suffered no trading disruptions at its data centers and trading desk, emphasizing the firm’s technological and trading redundancy, as well as its commitment to having physical traders on the main Dallas trading desk. Then Colas began his presentation that addressed the following questions: What does history say when one party has all control of the legislative and executive branches? Using data collected since 1948, when Democrats control both the legislative and executive branches, the S&P 500 returned ~14%. When Republicans held control of both Congress and the Presidency, it returned ~16%. This led Colas to say that “parties have an incentive to get ‘everything’ right when in full control” — meaning the Democrats need to manage and handle the…

This article was penned by CAPIS   Last week we held our February research call, featuring Nicholas Colas, co-founder of DataTrek Research. Colas is a regular speaker on the CAPIS research call and respected commentator on financial markets.  Our own David Choate, COO & Executive Director of Sales and Trading, started the call with an update on CAPIS’ status given the effects of recent winter weather in Texas and the resultant power grid failure and disruptions. Choate explained to attendees CAPIS suffered no trading disruptions at its data centers and trading desk, emphasizing the firm’s technological and trading redundancy, as well as its commitment to having physical traders on the main Dallas trading desk. Then Colas began his presentation that addressed the following questions: What does history say when one party has all control of the legislative and executive branches? Using data collected since 1948, when Democrats control both the legislative and executive branches, the S&P 500 returned ~14%. When Republicans held control of both Congress and the Presidency, it returned ~16%. This led Colas to say that “parties have an incentive to get ‘everything’ right when in full control” — meaning the Democrats need to manage and handle the…

Fixed Income Insights – An Interview with David Lee

CAPIS Insights

CAPIS Insights

posted by CAPIS on 02/17/2021 at 12:00 pm
by CAPIS on 02/17/2021

This article was penned by CAPIS   Trading in normal circumstances is already fraught with myriad complexities and idiosyncrasies but when one adds COVID-19 and all of its unique effects, it more closely resembles rocket science rather than simply matching a buyer and seller together. Just ask David Lee, CAPIS’ Director of Fixed-Income David Lee, who day in and day out meets this challenge for his clients.  In this Q&A conducted by CAPIS’ FVP of Institutional Sales Coleen Donohue following a panel discussion at a recent bank trust conference, Lee shares his insights on bond trading including how the markets have changed since going remote, client trading styles, and where liquidity can be found. Coleen: What can be said about trading methodologies that you see in action day in and day out? Is there a common “type” of trade you find yourself involved in?   David: Our most frequent trades are in investment-grade corporates in the secondary market on both the bid and offer.    Coleen: Headlines frequently point to the ongoing rise of electronic bond trading platforms — is CAPIS seeing volumes shift one way or the other?  David:  I have seen many of the reports that talk about the…

This article was penned by CAPIS   Trading in normal circumstances is already fraught with myriad complexities and idiosyncrasies but when one adds COVID-19 and all of its unique effects, it more closely resembles rocket science rather than simply matching a buyer and seller together. Just ask David Lee, CAPIS’ Director of Fixed-Income David Lee, who day in and day out meets this challenge for his clients.  In this Q&A conducted by CAPIS’ FVP of Institutional Sales Coleen Donohue following a panel discussion at a recent bank trust conference, Lee shares his insights on bond trading including how the markets have changed since going remote, client trading styles, and where liquidity can be found. Coleen: What can be said about trading methodologies that you see in action day in and day out? Is there a common “type” of trade you find yourself involved in?   David: Our most frequent trades are in investment-grade corporates in the secondary market on both the bid and offer.    Coleen: Headlines frequently point to the ongoing rise of electronic bond trading platforms — is CAPIS seeing volumes shift one way or the other?  David:  I have seen many of the reports that talk about the…

Employee Spotlight – Stephanie Deroy, Operations Supervisor

CAPIS Insights

CAPIS Insights

posted by CAPIS on 02/10/2021 at 11:00 am
by CAPIS on 02/10/2021

The following article was penned by CAPIS   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 spoke with one of the members of our operations team, Stephanie Deroy, who has worked at CAPIS for over 20 years. Take a look at our conversation below to learn about her career path, some of the biggest challenges and successes she’s experienced over the past two decades, and the next place she plans to travel to with her family of six.    Q: What did your career path look like and what is your current role at CAPIS? I joined CAPIS very young — I was 18 and the youngest in the company. I was in college and this was going to be my job during college years, but it turned into my career. I started off as an entry level, new account, back office clerk. Over the last 20 years I’ve become an expert in my field. I didn’t plan this path, it fell in my lap and became my career. I actually wanted to…

The following article was penned by CAPIS   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 spoke with one of the members of our operations team, Stephanie Deroy, who has worked at CAPIS for over 20 years. Take a look at our conversation below to learn about her career path, some of the biggest challenges and successes she’s experienced over the past two decades, and the next place she plans to travel to with her family of six.    Q: What did your career path look like and what is your current role at CAPIS? I joined CAPIS very young — I was 18 and the youngest in the company. I was in college and this was going to be my job during college years, but it turned into my career. I started off as an entry level, new account, back office clerk. Over the last 20 years I’ve become an expert in my field. I didn’t plan this path, it fell in my lap and became my career. I actually wanted to…

CAPIS Supports the Young Women’s Preparatory Network

CAPIS Insights

CAPIS Insights

posted by CAPIS on 02/09/2021 at 10:30 am
by CAPIS on 02/09/2021

This article was penned by CAPIS   Making a difference in young lives is important to CAPIS. That’s part of The CAPIS Difference. And we are proud to be a sponsor of this year’s 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 Young Women’s Preparatory Network’s (YWPN) mission is to support single-gender, college preparatory, public education in Texas and beyond. According to the Office of Educational Research and Improvement, girls tend to drop out of the STEAM academic pipeline earlier than boys, with many losing interest in these subjects during middle school and high school. YWPN gives young women the academic and leadership skills to achieve success in college and in life. The program’s success is striking: 100% of its students who graduate from high school are accepted at a college or university. “Getting more girls interested in [STEAM] requires deliberate strategies to connect learning with ‘real-life’ experiences. We have to give our girls the opportunity to engage in authentic, real-world learning experiences, as well as providing a strong [STEAM] focus within the school classroom. In addition, we know from watching the success…

This article was penned by CAPIS   Making a difference in young lives is important to CAPIS. That’s part of The CAPIS Difference. And we are proud to be a sponsor of this year’s 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 Young Women’s Preparatory Network’s (YWPN) mission is to support single-gender, college preparatory, public education in Texas and beyond. According to the Office of Educational Research and Improvement, girls tend to drop out of the STEAM academic pipeline earlier than boys, with many losing interest in these subjects during middle school and high school. YWPN gives young women the academic and leadership skills to achieve success in college and in life. The program’s success is striking: 100% of its students who graduate from high school are accepted at a college or university. “Getting more girls interested in [STEAM] requires deliberate strategies to connect learning with ‘real-life’ experiences. We have to give our girls the opportunity to engage in authentic, real-world learning experiences, as well as providing a strong [STEAM] focus within the school classroom. In addition, we know from watching the success…

CAPIS Q&A: Fixed Income Trading for Bank Trusts Made Easy

CAPIS Insights

CAPIS Insights

posted by CAPIS on 02/03/2021 at 11:00 am
by CAPIS on 02/03/2021

This article was penned by CAPIS   Bank trusts and wealth advisors have myriad broker-dealers vying for their business in the increasingly electronified fixed income trading universe. So why choose CAPIS? Because of the CAPIS Difference. But what is the CAPIS Difference? Coleen Donohue, First Vice President in Institutional Sales & Trading, explains how CAPIS stands out when it comes to fixed income trading in a conversation with David Lee, Director of Fixed-Income. David sheds light on how bank trusts can maximize their efficiency and profitability. Coleen: How do most clients access our fixed income liquidity: via our electronic platform, our trading desk, or is it a combination of high and low touch?   David: It’s a combination of both. Our bank trust/wealth advisors favor the electronic platform while our larger asset managers, insurance companies, bank portfolios, and pension funds utilize direct communications for ideas and execution.    Coleen: We know that ease and efficiency are key to our clients, and the electronic platform certainly offers ease of use, but how do clients know that they are getting the best price on the platform?   David: Many of the electronic platforms operate with little or no human intervention. Given the fixed income…

This article was penned by CAPIS   Bank trusts and wealth advisors have myriad broker-dealers vying for their business in the increasingly electronified fixed income trading universe. So why choose CAPIS? Because of the CAPIS Difference. But what is the CAPIS Difference? Coleen Donohue, First Vice President in Institutional Sales & Trading, explains how CAPIS stands out when it comes to fixed income trading in a conversation with David Lee, Director of Fixed-Income. David sheds light on how bank trusts can maximize their efficiency and profitability. Coleen: How do most clients access our fixed income liquidity: via our electronic platform, our trading desk, or is it a combination of high and low touch?   David: It’s a combination of both. Our bank trust/wealth advisors favor the electronic platform while our larger asset managers, insurance companies, bank portfolios, and pension funds utilize direct communications for ideas and execution.    Coleen: We know that ease and efficiency are key to our clients, and the electronic platform certainly offers ease of use, but how do clients know that they are getting the best price on the platform?   David: Many of the electronic platforms operate with little or no human intervention. Given the fixed income…

January Research Call RECAP: Geoff Garbacz on Short Interest Indicators

CAPIS Insights

CAPIS Insights

posted by CAPIS on 01/28/2021 at 10:43 am
by CAPIS on 01/28/2021

This article was penned by CAPIS   Last week we held our January research call, this time featuring Geoff Garbacz, co-founder of Quantitative Partners, who actually started his career with CAPIS. Geoff contributes to our Morning Note daily and discusses what he keeps an eye on in markets.  Our own Dave Choate, COO & Executive Director of Sales and Trading, started the call with some advice that would be well heeded in today’s markets: “When trading at or near the open when retail volume is the highest, use limits and avoid aggressive algorithms, because the aggressive algos will trade right through these price anomalies. And you’ll see that in your average price.” Little did we realize at the time, though, how prescient Dave’s and Geoff’s comments on markets would be — Geoff spent a good deal of time talking about evaluating heavily shorted equities.  Even if you had never heard of the r/wallstreetbets subreddit (a trading specific community on reddit.com, the message board of the internet) prior to the headline-grabbing market activities of the threads’ participants, heavily shorted names that have seen record activity were discussed on the call since Quantitative Partners utilization of Erlanger “squeeze” indicators. (Quantitative Partners represents…

This article was penned by CAPIS   Last week we held our January research call, this time featuring Geoff Garbacz, co-founder of Quantitative Partners, who actually started his career with CAPIS. Geoff contributes to our Morning Note daily and discusses what he keeps an eye on in markets.  Our own Dave Choate, COO & Executive Director of Sales and Trading, started the call with some advice that would be well heeded in today’s markets: “When trading at or near the open when retail volume is the highest, use limits and avoid aggressive algorithms, because the aggressive algos will trade right through these price anomalies. And you’ll see that in your average price.” Little did we realize at the time, though, how prescient Dave’s and Geoff’s comments on markets would be — Geoff spent a good deal of time talking about evaluating heavily shorted equities.  Even if you had never heard of the r/wallstreetbets subreddit (a trading specific community on reddit.com, the message board of the internet) prior to the headline-grabbing market activities of the threads’ participants, heavily shorted names that have seen record activity were discussed on the call since Quantitative Partners utilization of Erlanger “squeeze” indicators. (Quantitative Partners represents…

Developing Diverse Relationships: Q&A with Liz Whitehead & Heather Cox, Diversity Masterminds

CAPIS Insights

CAPIS Insights

posted by CAPIS on 01/27/2021 at 11:00 am
by CAPIS on 01/27/2021

This article was penned by CAPIS   The Women’s Business Enterprise National Council (WBENC) is an advocate for and the largest certifier of women-owned businesses. CAPIS first gained its accreditation as a WBENC-Certified Women’s Business Enterprise in 2015 and was just recertified this month. But firms that have gained the certification, or begun to pursue their own type of diversity initiatives, can frequently struggle with what to do next.  Fortunately for those who find themselves uncertain of a diversity path moving forward, Liz Whitehead and Heather Cox are there to help. They founded a business consultancy, Diversity Masterminds™, with the exact aim of helping those with supplier diversity certifications who feel like they are underutilizing that certification, by offering concise courses and masterclasses. (Supplier diversity certifications refer to certifications across a range of categories such as gender [like our WBENC certification], race, and veteran status.) So, I sat down with Heather and Liz for some background and perspective on how firms of all sizes approach diversity efforts: (Note: The following Q&A has been edited for clarity and length.) Coleen: How did you two first meet and where did this idea for Diversity Masterminds come from?  Heather: I was going to…

This article was penned by CAPIS   The Women’s Business Enterprise National Council (WBENC) is an advocate for and the largest certifier of women-owned businesses. CAPIS first gained its accreditation as a WBENC-Certified Women’s Business Enterprise in 2015 and was just recertified this month. But firms that have gained the certification, or begun to pursue their own type of diversity initiatives, can frequently struggle with what to do next.  Fortunately for those who find themselves uncertain of a diversity path moving forward, Liz Whitehead and Heather Cox are there to help. They founded a business consultancy, Diversity Masterminds™, with the exact aim of helping those with supplier diversity certifications who feel like they are underutilizing that certification, by offering concise courses and masterclasses. (Supplier diversity certifications refer to certifications across a range of categories such as gender [like our WBENC certification], race, and veteran status.) So, I sat down with Heather and Liz for some background and perspective on how firms of all sizes approach diversity efforts: (Note: The following Q&A has been edited for clarity and length.) Coleen: How did you two first meet and where did this idea for Diversity Masterminds come from?  Heather: I was going to…

CAPIS Outsourced Trading Desk and CAPIS ARC Combine Forces

CAPIS Insights

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.

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